- Ritchie Bros. to Become
Preferred Provider to Caterpillar and Participating Dealers for
Caterpillar Equipment Upon Closing of Ritchie Bros.' Acquisition of IronPlanet
- Strategic Relationship to Accelerate Caterpillar's IoT
Connectivity Offerings for Used Equipment Owners
VANCOUVER and PEORIA, IL, Aug. 29,
2016 /PRNewswire/ - Ritchie
Bros., the world's largest industrial auctioneer and a
leading equipment distributor (NYSE & TSX: RBA), and
Caterpillar Inc. (NYSE: CAT) today announced that they have entered
into a strategic alliance agreement. The strategic alliance
is expected to deliver significant benefits to both companies,
Caterpillar's independent dealers and their respective customers,
continuing an accelerated delivery of Caterpillar's Internet of
Things (IoT) connectivity offerings to improve customer fleet
utilization.
Under the terms of the agreement, Ritchie Bros. will become Caterpillar's
preferred global partner for live onsite and online auctions with
respect to used Caterpillar equipment, and will complement
Caterpillar's existing dealer channels. Ritchie Bros. will provide Caterpillar and its
dealers with access to proprietary auction platforms, software and
other value-added services, thereby enhancing the exchange of
information and services between customers, dealers and suppliers.
The strategic alliance is also expected to strengthen Ritchie Bros.' relationship with Caterpillar's
independent dealers around the world by providing them enhanced and
continued access to a global auction marketplace to sell their used
equipment.
Ritchie Bros. also announced
today that it has reached an agreement to acquire
IronPlanet®, a leading online marketplace for used heavy
equipment and other durable asset sales, of which Caterpillar and
its dealers own a minority position. The combined company,
with its trusted brands, will deliver a multi-channel marketplace
that will provide a full range of equipment asset management and
disposition solutions. The new strategic alliance between
Ritchie Bros. and Caterpillar
replaces and expands on existing agreements in place between
Caterpillar, its dealers and IronPlanet. The new strategic
alliance will become effective when Ritchie
Bros. completes its acquisition of IronPlanet, which is
subject to regulatory clearances and the satisfaction of other
customary closing conditions.
"Ritchie Bros. is proud to enter
into this historic alliance, which will strengthen our relationship
with Caterpillar, its dealers and end users, as well as help expand
our global reach and footprint," said Ravi
Saligram, Chief Executive Officer of Ritchie Bros. "Our marketing capabilities,
unrivaled suite of technology and powerful multi-channel
transactional platforms will add tremendous value and make us a
trusted strategic partner to the Caterpillar family."
"A key element of our digital strategy is connecting more
products in our customers' fleets, allowing us to help improve
their productivity, increase safety and drive sustainability. This
alliance will ensure that more used equipment buyers have access to
our best-in-class products, digital offerings and world class
customer support through the Cat dealer network," said Rob Charter, group president with responsibility
for Caterpillar's Customer and Dealer Support. "Ritchie Bros. and Caterpillar are beginning an
exciting new chapter in our relationship to better serve our global
customers."
The strategic alliance between Ritchie
Bros. and Caterpillar will have an initial five-year
term. After completing the acquisition of IronPlanet,
Ritchie Bros. will operate live
onsite auctions at participating Caterpillar dealers' locations
under the Cat Auction Services brand and also encompass
Ritchie Bros.' other onsite and
online brands.
About Ritchie
Bros.:
Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is the world's
largest industrial auctioneer, and one of the world's largest
sellers of used equipment for the construction, transportation,
agriculture, energy, mining, forestry and other industries.
Ritchie Bros.TM
asset management and disposition solutions include live unreserved
public auctions with on-site and online bidding;
EquipmentOneTM, an online auction
marketplace; Mascus, a global online equipment listing
service; private negotiated sales through Ritchie Bros. Private Treaty; and a range of
ancillary services, including financing and leasing through
Ritchie Bros. Financial Services.
Ritchie Bros. has operations in 19
countries, including 45 auction sites worldwide. Learn more at
rbauction.com, EquipmentOne.com, mascus.com,
rbauction.com/privatetreaty and rbauction.com/financing.
About Caterpillar:
For 90 years, Caterpillar Inc. has
been making sustainable progress possible and driving positive
change on every continent. Customers turn to Caterpillar to help
them develop infrastructure, energy and natural resource
assets. With 2015 sales and revenues of $47.011 billion, Caterpillar is the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines and
diesel-electric locomotives. The company principally operates
through its three product segments - Construction Industries,
Resource Industries and Energy & Transportation - and also
provides financing and related services through its Financial
Products segment. For more information, visit
caterpillar.com. To connect with us on social media, visit
caterpillar.com/social-media.
About IronPlanet:
IronPlanet is a leading online
marketplace for selling and buying used equipment and other durable
assets and an innovative participant in the multi-billion dollar
used equipment market. Founded in 1999 to transform the global used
equipment market, IronPlanet has built a database of more than 1.5
million registered users worldwide. IronPlanet connects buyers and
sellers of used equipment with its exclusive IronClad Assurance®
equipment condition certification and family of brands, including
IronPlanet®, GovPlanet®,
TruckPlanet®, Cat Auction Services, Kruse Energy &
Equipment AuctioneersSM, allEquip® and Asset
Appraisal ServicesSM. IronPlanet is backed by Accel
Partners, Kleiner Perkins Caufield
& Byers, Caterpillar and Volvo. For more information, visit
www.ironplanet.com.
Caution Regarding Forward-Looking Statements
This news
release contains forward-looking statements and forward-looking
information within the meaning of applicable U.S. and Canadian
securities legislation (collectively, "forward-looking
statements"), including, in particular, statements regarding the
terms and potential benefits of the proposed transaction between
Ritchie Bros. and Caterpillar, the
terms and conditions of the proposed IronPlanet transaction, the
expected timetable for completing the IronPlanet transaction,
benefits and synergies of the IronPlanet transaction, future
opportunities for the combined businesses of Ritchie Bros. and IronPlanet, future financial
and operational results and any other statements regarding events
or developments that Ritchie Bros.
believes or anticipates will or may occur in the future.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as "expect", "plan, "anticipate", "project", "target",
"potential", "schedule", "forecast", "budget", "estimate", "intend"
or "believe" and similar expressions or their negative
connotations, or statements that events or conditions "will",
"would", "may", "could", "should" or "might" occur. All such
forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks
and uncertainties, certain of which are beyond Ritchie Bros.'s control, including risks and
uncertainties related to: general economic conditions and
conditions affecting the industries in which Ritchie Bros., IronPlanet and Caterpillar
operate; obtaining regulatory approvals in connection with the
IronPlanet transaction; each of Ritchie
Bros.' and IronPlanet's ability to satisfy the merger
agreement conditions and consummate the transaction on the
anticipated timetable, or at all; Ritchie
Bros.' ability to successfully integrate IronPlanet's
operations and employees with Ritchie
Bros.' existing business; the ability to realize anticipated
growth, synergies and cost savings in the IronPlanet transaction;
the maintenance of important business relationships; the effects of
the IronPlanet transaction on relationships with employees,
customers, other business partners or governmental entities;
transaction costs; deterioration of or instability in the economy,
the markets we serve or the financial markets generally; as well as
the risks and uncertainties set forth in Ritchie Bros.' Annual Report on Form 10-K for
the year ended December 31, 2015,
which is available on the SEC, SEDAR, and Ritchie Bros.' website. The foregoing list is
not exhaustive of the factors that may affect Ritchie Bros.' forward-looking statements. There
can be no assurance that forward-looking statements will prove to
be accurate, and actual results may differ materially from those
expressed in, or implied by, these forward-looking statements.
Forward-looking statements are made as of the date of this news
release and Ritchie Bros. does not
undertake any obligation to update the information contained herein
unless required by applicable securities legislation. For the
reasons set forth above, you should not place undue reliance on
forward-looking statements.
SOURCE Ritchie Bros.
Auctioneers