Founded in 1998, Euro Auctions has its head office at Dromore in County Tyrone, Northern Ireland. It conducts unreserved heavy equipment auctions with onsite and online bidding under the brands Euro Auctions and Yoder & Frey, with 200+ employees in 14 countries.
In 2020 Euro Auctions conducted 60 auctions, selling close to 90,000 items for over £484mn across its nine locations in the United Kingdom, Northern Ireland, Germany, Spain, the United Arab Emirates, Australia, and the United States. Similar to Ritchie Bros, Euro Auctions also sells items through a timed auction format and a daily marketplace with Buy Now and Make Offer options.
"Ritchie. Bros and Euro Auctions are an ideal fit with a united goal to make asset insights, service offerings and disposition solutions easier than ever," said Ritchie Bros. CEO Ann Fandozzi. "Euro Auctions has an incredibly talented team, with expertise in asset sourcing, auction operations, sales, and customer service. Their 'can do' attitude and entrepreneurial spirit combined with technology has helped them adapt and grow, in much the same way as we have."
She added that the acquisition significantly accelerates Ritchie Bros.' strategy to drive revenue and earnings growth and add shareholder value by continuing to expand its capabilities in new channels, sectors, regions and customer segments.
Euro Auctions founder and director Derek Keys added: "Dave Ritchie and his brothers were a big inspiration for my brothers and I in the creation of Euro Auctions. We modelled much of what we do off Dave's customer-centric philosophy, which still runs through Ritchie Bros today. Bringing us together will drive value for customers, as we provide more equipment, solutions, and services to the many industries and regions in which we operate."
Ritchie Bros. says it will be retaining Euro Auctions employees and its brand, both of which are highly regarded in the EMEA region. The company adds that this will expand Ritchie Bros.' overall footprint and access to equipment, while also tapping into new revenue streams with service offerings to Euro Auctions customers, including inventory management services, data solutions, financing, warranty, insurance, inspections, refurbishing, shipping, and more.
Among its strategic reasons for the proposed acquisition, Ritchie Bros. says Euro Auctions has considerable presence across Europe and the Middle East, particularly in the UK and Germany and will serve as a platform to accelerate international growth.
Ritchie Bros. says its suite of tools and digital services will unlock value for Euro Auctions customers post acquisition, providing a more robust offering for customers. Tools and services include a free business inventory management system from Ritchie Brothers. Asset Solutions, data analytics tools like Market Trends and Ritchie Bros. Asset Valuator, financing from Ritchie Bros.
Under the terms of the transaction, Ritchie Bros. will acquire 100% of the equity of the companies comprised within the Euro Auctions group for an enterprise value of £775mn in cash.
The transaction has been approved by the board of directors of Ritchie Bros. and is expected to close in late 2021 or early 2022, subject to regulatory clearances and the satisfaction of other customary closing conditions.
Ritchie Bros. bought California-based online heavy equipment auction house IronPlanet in 2017.
Established in 1958, Canada-headquartered Ritchie Bros. is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including quarrying, mining, construction, transportation, agriculture, energy, oil and gas, and forestry, the company's selling channels include: Ritchie Bros. Auctioneers; IronPlanet, an online marketplace with featured weekly auctions and providing the exclusive IronClad Assurance equipment condition certification; Marketplace-E, a controlled marketplace offering multiple price and timing options; and Mascus, a leading European online equipment listing service.