Ritchie Bros. Auctioneers (RBA) is buying IAA (IAA) in a deal valued at $7.3 billion U.S.,
including $1 billion U.S. of debt.
Under terms of the agreement, IAA shareholders will receive $10 U.S. in cash and 0.5804 of a
Ritchie Bros. common share for each share of IAA they own.
Ritchie Bros. shareholders will own 59% of the combined company and IAA shareholders will
own 41%. The purchase price represents a premium of 19% to IAA's closing share price on
November 4.
Vancouver-based Ritchie Bros. sells heavy industrial equipment and trucks through live and
online auctions. IAA, based in Westchester, Illinois, has nearly 4,500 employees and more than
210 facilities in the U.S., Canada, and England. It auctions motor vehicles on a digital platform.
The deal will see IAA CEO and president John Kett and three other current members of the IAA
board join the Ritchie Bros. board once the transaction is finalized. Ritchie Bros. chairman Erik
Olsson will remain in his current role.
The deal is expected to close in the first half of 2023, subject to approval by shareholders and
regulators.
Ritchie Bros. announced the deal as it reported third-quarter net income of $42.9 million U.S. or
$0.38 U.S. per share, up from a profit of $32.4 million U.S. or $0.29 U.S. per share in the same
period last year.
Ritchie Bros.’ stock fell 18% after the deal was announced, closing at $69.16 on the Toronto
Stock Exchange. Year-to-date, the stock is down 11%.
