Ritchie Bros. Auctioneers (TSX: RBA) announced this morning that it has entered into a definitive agreement to acquire auto parts multi-manufacturer platform SmartEquip. The acquisition is reported to be for a total consideration of US$175 million.
“SmartEquip will enable us to offer asset-specific, full-lifecycle parts and service support on behalf of our dealer and OEM partners to our buyers,” said Ritchie Bros CEO Ann Fandozzi.
According to the company’s release, SmartEquip supports “approximately US$1 billion in annual transaction volume with more than 600 OEM brands”. Upon the transaction’s close, the industrial auctioneer will own 100% equity on the platform.
Goldman Sachs & Co. serves as the sole financial advisor to Ritchie Bros regarding this acquisition. The transaction is subject to customary closing conditions, including the termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Ritchie Bros last traded at $78.43 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.