Ritchie Bros. will buy Euro Auctions, parent of Yoder & Frey, in a $1.08 billion deal Ritchie says will give it a larger footprint in Europe and the Middle East.
Ritchie says it will acquire 100% of Euro Auctions equity. In addition, it will retain key management employees, including Derek Keys, Euro Auction founder and director. The deal is expected to be final in the first quarter of 2022.
"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," says Ann Fandozzi, Ritchie CEO.
Founded in 1998, Euro Auctions purchased U.S.-based Yoder & Frey in 2016, the same year Ritchie purchased IronPlanet. Euro Auctions says it conducted 60 unreserved heavy equipment auctions in 2020 through its live and online sales, selling close to 90,000 items.
For 47 years, Yoder & Frey has held a February auction in Kissimmee, Florida, which it held live this past February, bucking the online-only trend after the pandemic hit.
Along with its U.S. presence, the company has nine locations in Germany, Spain, Northern Ireland, the United Kingdom, the United Arab Emirates and Australia.
"Dave Ritchie and his brothers were a big inspiration for my brothers and I in the creation of Euro Auctions," Euro Auctions' Keys says. "We modeled 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."
Last year, Ritchie also acquired equipment data provider Rouse Services, which traces its lineage back to Max Rouse & Sons, an auction and liquidation firm.
"Between our two great companies there is 88 years of experience, an amazing customer-focused team, state-of-the-art auction sites, innovative online platforms, along with a suite of different solutions and services," Fandozzi, says.