Ritchie Bros cleared to acquire IronPlanet

Construction equipment auctioneer and distributor Ritchie Bros has announced it has received unconditional clearance from the US Department of Justice for its acquisition of IronPlanet.

The deal – which was announced in August last year – is worth US$758.5 million (€679 million).

US-based IronPlanet sells machinery primarily through online platforms, with weekly online auctions. In 2015, it sold around US$787 million (€704 million) worth of equipment.

Collectively, Ritchie Bros. and IronPlanet sold over US$3 billion (€2.7 billion) worth of equipment in the 12 months to 30 June, 2016.

Following the clearance, Ravi Saligram, Ritchie Bros CEO, said, “Over the last three years, we’ve been successfully executing on a multi–channel diversification strategy to ensure that the company stays relevant and strong in a changing environment.

“In IronPlanet, we found a company that allows us to continue our rich history of innovation and gives us the tools and talent to transform into a digital information and insights powerhouse.”

Mr Saligram added that the missions of the two companies were similar – wanting to deliver maximum choice and value to their customers.

The transaction is expected to close in the next few weeks. A new organisational structure will be announced after closing.

On completion of the IronPlanet acquisition last August, Ritchie Bros said it would also start an initial five-year strategic alliance with manufacturer Caterpillar which would see it become Caterpillar’s preferred global partner for live onsite and online auctions.

Caterpillar owns a minority stake in IronPlanet.