Ritchie Bros. has completed its acquisition of IronPlanet, a leading online marketplace for heavy equipment and other durable assets. This move accelerates Ritchie Bros.’ strategy of becoming a one-stop, multichannel company where customers can buy, sell or list equipment, when, how and where they choose – both onsite and online.
According to Ritchie Bros., the company expects to combine its online EquipmentOne brand with the IronPlanet DailyMarketplace later this year, creating a brand offering called Marketplace E that gives customers more ways to set reserve pricing. Ritchie Bros. also gains expanded growth capabilities in the oil and gas and government sectors.
The company plans to combine the Ritchie Bros. and IronPlanet sales forces in the US, Canada and Europe, in line with its strategy to provide customers a one-stop, multichannel experience. Territory and strategic account managers will be positioned as solution sellers and offer customers three main product offerings: RBA integrated unreserved onsite auctions; IronPlanet weekly featured auctions and Marketplace E, an IronPlanet solution. Mascus, Kruse Energy and GovPlanet will continue to remain as stand-alone businesses with stand-alone sales teams, given that they serve specialised customer segments.
As a part of this acquisition, Ritchie Bros. also enters into an initial five-year strategic alliance with Caterpillar, which is expected to strengthen its relationship with Caterpillar’s independent dealers around the world by providing them enhanced and continued access to a global auction marketplace to sell their used equipment. The company also will continue to coordinate and manage Cat auctions in respective Cat dealer geographies.
“We are pleased that the acquisition of IronPlanet has been completed and I am delighted to welcome IronPlanet employees to the Ritchie Bros. family. Our shared passion for serving customers is loud and clear and it will continue to be our guiding light in the unified company,” said Ravi Saligram, CEO of Ritchie Bros. “Our integration plans have been meticulously worked on during the last nine months: our combined senior management team will be in place Day 1 and our sales forces will be integrated within the first 30 days. In the second half of 2017, we will focus on aligning and unifying the company, optimising the integration, starting to achieve synergies and getting the organisation ready for a fast start in 2018 to deliver growth and add shareholder value.”
Ritchie Bros. will maintain its global headquarters and technology presence in Vancouver, Canada, and confirmed that IronPlanet’s headquarters in Pleasanton, California, the US, will also be one of its key technology hubs. The company will optimise its US office network over the next few years and plans to establish a small commercial hub in the western suburbs of Chicago in the second half of the year.