The transaction helps RB Global’s expansion into the U.S.
RB Global, the parent company of Ritchie Bros. Auctioneers, is set to acquire BigIron Auction Company.
A March 4 press release indicates the acquisition will help accelerate RB Global’s “strategic expansion into U.S. agriculture.”
The acquisition shouldn’t change the way buyers and sellers interact with the BigIron platforms, which also includes Sullivan Auctioneers and realty auction services.
“BigIron brings a talented team with deep ag sector knowledge and an established sales footprint that will continue operating as a stand-alone brand while being complemented by the Ritchie Bros. industrial footprint,” Jim Kessler, CEO of RB Global, said in a statement. “This will create opportunities to serve even more customers through a combination of onsite, offsite, and digital channels and solutions.”
BigIron reps are positive about the pending deal.
The combined resources will deliver positive results for users.
“RB Global values our culture and shares our respect for the agricultural community. Through this combination, we gain a larger platform and additional resources, which is expected to help us deliver even greater choice and liquidity to all the sellers we serve,” Mark Stock, a co-founder of BigIron, said in the statement.
Markets viewed the announcement favourably.
As a publicly traded company, RB Global’s stock price rose on March 4 to a closing price of $140.86 on the TSX.
As of the afternoon of March 6 the price has come down to $140.58.
The deal is expected to close in the second half of this year.
Until then both companies will operate independently.