Ritchie Bros. to acquire Euro Auctions
£775 million acquisition of Euro Auctions set to expand Ritchie Bros. reach in EMEA region
RITCHIE Bros., a leading global asset management, disposition, and services company, and Euro Auctions, Europe's leading plant and machinery auction house, have entered into an agreement under which Ritchie Bros. will acquire Euro Auctions group for around US$1.08 billion (£775 million).
Founded in 1998, Euro Auctions conduct unreserved heavy equipment auctions with on-site and online bidding under the brands Euro Auctions and Yoder & Frey, with more than 200 employees in 14 countries.
In 2020 the company conducted 60 auctions, selling close to 90,000 items for more than £484 million across its nine locations in the UK, Northern Ireland, Germany, Spain, the UAE, Australia, and the US. Similar to Ritchie Bros., Euro Auctions also sell 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 Ann Fandozzi, chief executive officer of Ritchie Bros.
‘Euro Auctions have 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.
‘This acquisition significantly accelerates our strategy to drive revenue and earnings growth and add shareholder value by continuing to expand our 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. will be retaining Euro Auctions employees and their brand, both of which are highly regarded in the EMEA region. 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, among others, inventory management services, data solutions, financing, warranty, insurance, inspections, refurbishing, and shipping.