Global asset management company Ritchie Bros has acquired Northern Ireland-based Euro Auctions for nearly $1.1 billion (€850 million) as it seeks to expand its European footprint.
Euro Auctions was founded in Dromore, Co Tyrone, in 1998 by Derek Keys and his brothers. It conducts unreserved heavy equipment auctions with onsite and online bidding under the brands Euro Auctions and Yoder & Frey. It has more than 200 employees in 14 countries.
In 2020, the company conducted 60 auctions, selling close to 90,000 items for £484 million (€570 million) 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 Ann Fandozzi, Ritchie Bros CEO.
“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.
“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.”
Employee retention
Separately, Mr 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.
“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 its brand. This will expand its overall footprint and access to equipment, while also tapping into new revenue streams with service offerings to Euro Auctions customers.
These will include inventory management services, data solutions, financing, warranty, insurance, inspections, refurbishing, and shipping.
The transaction is expected to close in late 2021 or early 2022, subject to regulatory clearances and the satisfaction of other customary closing conditions.
