Page 16 • August 15, 2021 • www.constructionequipmentguide.com • CONSTRUCTION EQUIPMENT GUIDE
Ritchie Bros. Acquires Euro Auctions, AEM Offering Its Expands Its Reach in EMEA Region Annual Workforce Solutions Summit
Ritchie Bros. and Euro Auctions have jointly announced more equipment selection. Euro Auctions has considerable that they have entered into an agreement under which presence across Europe and the Middle East, particularly in Ritchie Bros. will acquire Euro Auctions group for an enter- the U.K. and Germany and will serve as a platform to accelprise value of approximately $1.08 billion. erate international growth.” Founded in 1998, Euro Auctions conducts unreserved • Accelerates Inventory Management System Adoption — heavy equipment auctions with onsite and online bidding Ritchie Bros. suite of tools and digital services will unlock under the brands Euro Auctions and Yoder & Frey, with value for Euro Auctions customers post acquisition, providmore than 200 employees in 14 countries. In 2020, the com- ing a more robust offering for customers. Tools and services pany conducted 60 auctions, selling close to 90,000 items include a free business inventory management system from across its nine locations in the United Kingdom, Northern RB Asset Solutions, data analytics tools like Market Trends Ireland, Germany, Spain, the United Arab Emirates, and RB Asset Valuator, financing from Ritchie Bros. Australia and the United States. Financial Services, as well as shipping, insurance, warSimilar to Ritchie Bros., Euro Auctions also sells items ranties, refurb and inspection services. through a timed auction format and a daily marketplace with • Global Platform for At-Risk — The combined entity will Buy Now and Make Offer be able to leverage industry options. best practices and decades of “Ritchie Bros. and Euro “Euro Auctions has an equipment expertise, while Auctions are an ideal fit with providing access to more capa united goal to make asset incredibly talented team, with ital to quickly offer robust atinsights, service offerings and risk consignment options for disposition solutions easier expertise in asset sourcing, customers globally, regardthan ever,” said Ann auction operations, sales and less of transaction size. Fandozzi, Ritchie Bros. CEO. “Euro Auctions has an customer service.” Transaction Terms incredibly talented team, with Under the terms of the expertise in asset sourcing, transaction, Ritchie Bros. will auction operations, sales and Ann Fandozzi acquire 100 percent of the customer service. Their ‘can equity of the companies comRitchie Bros. do’ attitude and entrepreneurprised within the Euro ial spirit combined with techAuctions group for an enternology has helped them adapt and grow, in much the same prise value of approximately $1.08 billion in cash. This repway as we have. This acquisition significantly accelerates resents an implied multiple of ~15.3x 2021E EBITDA (nonour strategy to drive revenue and earnings growth and add GAAP measure), including run rate synergies. Ritchie Bros. shareholder value by continuing to expand our capabilities in intends to finance the transaction through a combination of new channels, sectors, regions and customer segments.” cash on hand and new debt; and has bridge financing comEuro Auctions Founder and Director Derek Keys added, mitments from Goldman Sachs Bank USA, subject to cus“Dave Ritchie and his brothers were a big inspiration for my tomary terms and conditions to facilitate the transaction brothers and I in the creation of Euro Auctions. We modeled close. Following the close of the transaction and the required much of what we do off Dave’s customer-centric philosophy, financing, Ritchie Bros. is expected to have an adjusted net which still runs through Ritchie Bros. today. Bringing us debt to adjusted EBITDA ratio (non-GAAP measure) of together will drive value for customers, as we provide more approximately 3.9x. Ritchie Bros. has secured employment arrangements with equipment, solutions, and services to the many industries key management of the Euro Auctions business, including and regions in which we operate.” Ritchie Bros. will be retaining Euro Auctions employees Derek Keys, who will continue to be involved for a miniand its brand, both of which are highly regarded in the mum of three years post-closing. It is intended that Jonnie EMEA region. This will expand Ritchie Bros.’ overall foot- Keys will assume a senior leadership position, and Lynden print and access to equipment, while also tapping into new and Trevor Keys will be retained as sourcing leads. The transaction was approved by the board of directors of revenue streams with service offerings to Euro Auctions customers, including inventory management services, data solu- Ritchie Bros. and is expected to close in late 2021 or early tions, financing, warranty, insurance, inspections, refurbish- 2022, subject to regulatory clearances and the satisfaction of other customary closing conditions. ing, shipping and more. Strategic Rationale for the Acquisition • Accelerates our Journey — “This acquisition will accelerate our journey, strengthen our strategic pillars and further establishes Ritchie Bros. as the trusted global marketplace for insights, service and transaction solutions for commercial assets. Euro Auctions is an ideal and complementary brand to expand Ritchie Bros.’ global footprint. This combination will bring unprecedented and diversified choice to customers around the world, facilitating better price discovery and
As part of its ongoing efforts to inspire members and association partners in developing strategies to build a bigger, better workforce, AEM is offering its second-annual Workforce Solutions Summit. This one-day virtual summit — scheduled for Aug. 19, 2021 — will offer valuable information and insights, as well as research-based solutions, to organizations looking to recruit, train and retain employees. “It’s critically important for our industry to take a proactive and informed approach to workforce development activities, as well as developing the employees of tomorrow,” said AEM Senior Director of Workforce Solutions Julie Davis. “Manufacturing offers a wealth of incredible career opportunities, and this summit serves as a uniquely valuable forum for industry stakeholders to learn how to effectively recruit talent and promote the skilled trades.” Feature speakers at this year’s Workforce Solutions Summit include: •YourExecutiveCoach.com’s Janyne Peek-Emsick, who will focus on the neuroscience of conflict • McKinsey & Company’s Bryan Hancock, who will discuss the future of work • Microsoft’s Lauren Gardner, who will cover diversity and inclusion • Workforce Alliance of South Central Kansas’s Keith Lawing, who will talk about connecting with local workforce development • Career Research Group’s Chris Czarnik, who will present on best practices related to employee retention and recruitment In addition, several company representatives are scheduled to share strategies they are employing in order to influence workforce success in their organizations and communities. They include: • Linamar • UGDSB • GPS Education Partners • Komatsu Mining Corp. AEM also will offer hands-on Workforce Pre-Summit Workshops on Aug. 17 and Aug. 18. Capacity is limited, so interested attendees should add the workshops to their order when registering for the Workforce Solutions Summit. “Our Workforce Summit will cover topics to help our members and the industry develop a pipeline of talent to help them move their businesses forward, and many of the ideas presented can be easily implemented,” continued Davis. “Ultimately, this summit is designed for all roles who have a stake in growing and developing a successful workforce — executives and company leaders, operation leads, training Advisors and hiring managers, and human resources and recruiting Goldman Sachs & Co. LLC is serving as exclusive finan- professionals,” she said. “Because finding talent is more than cial advisor to Ritchie Bros., Norton Rose Fulbright LLP and just a human resources issue, it’s a business issue.” Skadden, Arps, Slate, Meagher & Flom LLP are serving as Sponsors for this year’s Workforce Solutions Summit are legal advisors, and KPMG LLP is serving as accounting, tax Apprenticeship Works!, GPS Education Partners, Green and IT advisor. Jefferies International Limited is serving as Mountain Lion Corporation and Ultra Consultants. financial advisor to the vendors of Euro Auctions, and A&L For additional information, download the summit agenda Goodbody LLP as legal advisor. and the pre-summit workshop agenda, or contact AEM’s For more information, visit RitchieBros.com. Julie Davis at jdavis@aem.org.
