Sotheby's has purchased a 25% stake in RM Auctions, an
auctioneer of collectible cars, noting that "the market for
investment-quality motor cars has never been stronger."
Sotheby's said the two companies have synergies including
"significant overlap of top collectors and a focus on new
markets."
A statement from Sotheby's didn't state the price of the
transaction.
Sotheby's has previously collaborated with RM on automotive
sales, including the November 2013 Art of the Automobile auction in
New York, which brought in $62.8 million, including a $14.3 million
sale of a 1964 Ferrari 250 LM.
RM Auctions, which will be called RM Sotheby's, will hold a
March 14 auction in Amelia Island, Fla.
Sotheby's said it may eventually increase its ownership
stake.
In November, William Ruprecht agreed to step down as chief
executive when a successor is in place. Activist investor Dan Loeb,
who joined the board last year, had campaigned publicly for a
leaner, more-profitable company and criticized Mr. Ruprecht in a
letter he released publicly before reaching a truce with the board
in June.
Also in November, the company said its third-quarter loss
narrowed as it benefited from lower costs and a higher tax benefit
that offset a decline in revenue.
Write to Josh Beckerman at josh.beckerman@wsj.com
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