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Top Industrial Auctioneer Ritchie Bros $RBA to Acquire VC-Backed IronPlanet for $759M

Top Industrial Auctioneer Ritchie Bros $RBA to Acquire VC-Backed IronPlanet for $759M

Caterpillar said it plans to pursue strategic alternatives, including a possible divestiture for its room and pillar products, which serve a segment of underground soft rock mining customers, as part of a larger restructuring and cost reduction plan. “IronPlanet joining forces with Ritchie Bros. will allow the combined company to deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions,” said Gregory J. Owens, chairman and chief executive of IronPlanet, who agreed to join the combined company’s executive committee upon closing. Ritchie Bros. said it has secured employment agreements with IronPlanet key executives. Collectively, Ritchie Bros. and IronPlanet (on a pro forma basis) sold more than $3 billion of assets through online transactions during the 12 months trailing June 30, 2016 – ranking the combined business among the world’s top 50 B2B e-commerce companies, based on value sold, according to Ritchie Bros. Ritchie Bros. intends to finance the transaction through a combination of cash on hand and new debt, and has bridge financing commitments from Goldman Sachs Bank USA subject to customary terms and conditions to facilitate the transaction close. Following the deal closing and the required financing, Ritchie Bros. is expected to have a net debt to EBITDA ratio of no more than 3.0x, it says. The deal was approved by the boards of directors of both companies and is expected to close by the first half of 2017, subject to regulatory clearances and other customary closing conditions. Goldman, Sachs & Co. is serving as financial advisor to Ritchie Bros. and Skadden, Arps, Slate, Meagher & Flom LLP and Dechert LLP are serving as legal advisors. J.P. Morgan Securities LLC is serving as financial advisor to IronPlanet and Orrick, Herrington & Sutcliffe LLP is serving as legal advisor. The Ritchie Brothers – How They Started And Prospered Over Six Decades Ritchie Bros. Auctioneers was established in Kelowna, B.C., Canada. The three Ritchie brothers – Ken, John and Dave Ritchie – took over the OK Used Furniture Store from their father in 1955. They entered the auction business in 1958 when they needed CA$2,000 to pay a bank debt on short notice. A friend suggested they conduct an auction to get rid of some surplus inventory from the furniture store. They conducted their first auction at the Scout Hall in Kelowna in 1958 and discovered a new way of doing business. Starting with that first auction at the Scout Hall, Ritchie Bros. maintained a strict policy of conducting unreserved auctions – meaning there were no minimum bids and no reserve prices. The brothers also established a policy of not allowing bid-ins or buybacks by the sellers. The brothers began conducting auctions more regularly and in 1958 incorporated Ritchie Bros. Auction Galleries Ltd. to formalize their new business. Ritchie Bros. began selling used equipment in the 1960s. In 1963 Dave Ritchie moved to Vancouver, B.C. and rented an auction site on S.E. Marine Drive. He set up the company’s first equipment auction in Vancouver shortly after. The Ritchie brothers conducted their first major unreserved industrial auction in Radium Hot Springs, British Columbia on June 7, 1963. They sold CA$663,000 of equipment in one day – by far the largest auction in the company’s history. The success of the Radium Hot Springs auction convinced the brothers that they could make more money auctioning used equipment than selling furniture, so they sold their furniture store in Kelowna and went into the auction business full-time. Photo: Ritchie Bros. Auction Site. Average auction sites are 60 acres in size and feature offices, an auction theatre and equipment refurbishing facilities, with over a dozen full-time employees and dozens more part-time staff during auction weeks.]]>

Apollo M&A of AmQuip and Maxim Creates Premier Crane Fleet

Apollo M&A of AmQuip and Maxim Creates Premier Crane Fleet

Austria’s Palfinger AG (VIE: PAL) agreed to acquire Norway’s TTS Group ASA (OSE: TTS) for NOK 600 million ($72.66 million). In May, Finland-based Konecranes Plc (NASDAQ Helsinki: KCR1V) agreed to acquire the Material Handling and Port Solutions division of Connecticut-based Terex Corp. (NYSE: TEX), for $1.3 billion. “AmQuip and Maxim share similar cultures and values relating to people, safety and the desire to serve the industry,” said Carlisle. “This combination represents an opportunity for us to build a world class organization with the best people in the crane industry. We intend to run the business in the most effective manner possible, utilizing best practices of both organizations. This partnership will be mutually beneficial to both of our teams and, most importantly, to the customers we serve by providing an enhanced level of service, expertise, equipment and geographic coverage.” “Our companies know each other well with ties that go back more than 30 years,” said Bove. “The teams on both sides throughout each organization are made up of the most experienced lifting solutions experts in the industry and the ability to work together going forward is exciting for everyone involved.” “We are tremendously excited by this unique opportunity to combine two premier businesses in the North American lifting services market,” said Apollo Global Management partners Larry Berg and Antoine Munfakh. “Both Maxim and AmQuip have built exceptional reputations and customer relationships through the depth of their employee talent and their commitment to providing the highest levels of customer service. We see many compelling growth and innovation opportunities in the market, and we look forward to bringing Apollo’s resources to bear in helping Bryan and Al achieve their long-term strategic objectives.” Barclays is serving as financial advisor to Apollo, Harris Williams & Co. and Oppenheimer & Co. Inc. are serving as financial advisors to AmQuip and Clearlake, and Goldman, Sachs & Co. is serving as financial advisor to Maxim. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor to Apollo, Stradling Yocca Carlson & Rauth and Cooley LLP are serving as legal advisors to Clearlake, and Latham & Watkins LLP is serving as legal advisor to Platinum Equity. The debt financing for these transactions is being committed to by J.P. Morgan Chase Bank N.A., Wells Fargo, Barclays, and Jefferies Finance LLC, and Cahill Gordon & Reindel LLP and Otterbourg P.C. are serving as their legal counsel. Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $170 billion as of December 31, 2015 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. Clearlake Capital Group is a private investment firm with a sector-focused approach. The firm’s core target sectors include industrials, energy and power; technology, communications and business services; and consumer products and services. Clearlake currently has over $3.5 billion of assets under management. The firm is headquartered in Santa Monica, Calif. Platinum Equity is a global private equity investment firm with a portfolio of approximately 25 operating companies. The firm specializes in acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. The firm was founded in 1995 by Tom Gores, and has completed more than 175 acquisitions. The firm is headquartered in Los Angeles, Calif.]]>