Equipment giant Euro Auctions in Co Tyrone is to be sold to a publicly traded Canadian company for nearly Â£ 775million ($ 1.1 billion).
Itchie Bros, which reported 2020 revenue of $ 1.4 billion, announced the $ 1 billion deal for the company, founded in 1998 by Derek Keys and other family members. Dromore.
Brother Jonnie is the commercial director of the company.
Derek Keys will remain with the company for at least three years, said Ritchie Bros.
It was founded in British Columbia in 1958 by three brothers and is today one of the largest heavy equipment auctioneers in the world.
Mr Keys said: âDave Ritchie and his brothers were a great inspiration to my brothers and I in creating Euro Auctions.
âWe’ve modeled a lot of what we do on Dave’s customer-centric philosophy, which still runs through Ritchie Bros today.
âComing together will create value for customers as we will provide more equipment, solutions and services to the many industries and regions in which we operate. “
In 2020, Euro Auctions held 60 auctions, selling nearly 90,000 items for over Â£ 484 million at nine locations in Great Britain, Northern Ireland, Germany, Spain, United Arab Emirates, in Australia and the United States.
Euro Auctions parent company Gardrum Holdings reported an after-tax profit of almost Â£ 20million on revenue of Â£ 143million in 2019.
The company operates two brands, Euro Auctions and Yoder & Frey, and has more than 200 employees in 14 countries.
Euro Auctions also sells equipment through a timed auction format and daily market with Buy Now and Make Offer options, similar to Ritchie.
Ann Fandozzi, Managing Director of Ritchie Bros, said: âRitchie Bros and Euro Auctions fit together perfectly with a common goal of making asset information, service offerings and disposition solutions easier than ever.
âEuro Auctions has an incredibly talented team, with expertise in asset research, auction operations, sales and customer service.
âTheir positive attitude and entrepreneurial spirit combined with technology has helped them adapt and grow, much the same way we have.
âThis acquisition significantly accelerates our strategy to drive revenue and earnings growth and add shareholder value by continuing to expand our capabilities into new channels, industries, regions and customer segments. “
Ritchie Bros. will retain the employees of Euro Auctions and its brand, both of which are highly regarded in Europe, the Middle East and Africa, the Canadian company said.
“This will expand Ritchie Bros’ global footprint and access to equipment, while tapping into new revenue streams with service offerings to Euro Auctions customers, including inventory management services, data, financing, warranty, insurance, inspections, refurbishment, shipping and more, âhe added.
âThis acquisition will accelerate our progress, strengthen our strategic pillars and Further establishes Ritchie Bros as the trusted global marketplace for information, services and transaction solutions for business assets.
âEuro Auctions is an ideal and complementary brand to expand Ritchie Bros. global presence. This combination will provide unprecedented and diverse choice to customers around the world, facilitating better price discovery and greater equipment selection.
Under the terms of the deal, which is expected to be sealed early next year, Ritchie Bros. will acquire 100% stake in the Euro Auctions group for a total of Â£ 775 million, or around $ 1.08 billion, in cash.
Download the Belfast Telegraph app
Get quick and easy access to the latest news, sports, business and opinion from Northern Ireland with the Belfast Telegraph app.