Caterpillar and Ritchie Bros. form strategic alliance
Ritchie Bros. also announce proposed acquisition of heavy equipment online auctioneers IronPlanet
CATERPILLAR have entered into a strategic alliance with Ritchie Bros., the world’s largest industrial auctioneers, for the Canada-based company to conduct live onsite and online auctions for used Caterpillar equipment.
Under Caterpillar’s deal with Richie Bros., the auctioneers will provide the US equipment manufacturer and its dealers with access to proprietary auction platforms, software and other value-added services. This will enhance the exchange of information and services between customers, dealers and suppliers.
‘Ritchie Bros. is proud to enter into this historic alliance, which will strengthen our relationship with Caterpillar, its dealers and end-users, as well as help expand our global reach and footprint,’ said Ravi Saligram, CEO of Ritchie Bros. ‘Our marketing capabilities, unrivalled suite of technology and powerful multi‐channel transactional platforms will add tremendous value and make us a trusted strategic partner to the Caterpillar family.’
The collaboration between Caterpillar and Ritchie Bros. follows the global auctioneer’s announcement to acquire IronPlanet, a private company based in the US, for around US$758.5 million.
IronPlanet were formed in 1999 to focus on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. The company conducts its sales primarily through online‐only platforms, with weekly online auctions and in other equipment marketplaces.
In 2015, IronPlanet generated sales of around US$787 million in gross merchandize value (GMV) through their sales channels.
‘This transformative transaction is the logical next step for Ritchie Bros., building on our multi‐channel platform, global reach and long‐standing customer relationships,’ commented Mr Saligram.
‘Together with IronPlanet, we will create a combined company of trusted brands with the ability to provide customers around the world with a greater number of choices and platforms to sell, buy and list equipment when, where and how they want – whether onsite or online.’
The strategic alliance between Ritchie Bros. and Caterpillar will have an initial five-year term. After completing the acquisition of IronPlanet, Ritchie Bros. will operate live onsite auctions at participating Cat dealers' locations under the ‘Cat Auction Services’ brand, as well as encompassing Ritchie Bros.' own onsite and online brands.