An auctioneer and operator of B2B marketplace equipment of used construction recently put the finishing touches on a busy first quarter.
For starters, Ritchie Bros. Auctioneers completed its $7.3 billion acquisition of Westchester, Illinois-based IAA, which facilitates the marketing and sale of total-loss, damaged and low-value vehicles. “The closing of the IAA acquisition represents the beginning of an exciting new chapter for Ritchie Bros. as we expect the combination of our businesses to drive long-term, profitable sales,” says Ann Fandozzi, CEO of Ritchie Bros. “With IAA, we will accelerate our transformation into a premier digital marketplace and expand into an attractive, adjacent vertical, broadening our global footprint. Our combined yard footprint, marketplace infrastructure and comprehensive suite of innovative solutions will allow us to serve customers more effectively and efficiently than ever before.”
In tandem with the closing of its cash and stock deal for IAA, which auctions damaged and repairable vehicles, theft-recovered vehicles, vehicle parts and donation vehicles, Ritchie Bros also changed its corporate name to RB Global. “Over the last several years, we have worked to create a new growth platform that extends beyond auctions by building out our suite of solutions, enhancing our technology offerings and expanding our real estate footprint,” Fandozzi says. “The IAA acquisition accelerates these efforts, adding significant scale, reach and capabilities. As one company – RB Global – we have a unified vision for success and value creation.”
RB Global also reported higher gross transaction volume, revenue and a smaller net loss for the first quarter ended March 31.
The company reported gross transaction volume of about $1.90 billion, an increase of 32% from $1.44 billion in the prior year. Revenue increased year over year by 30% to $512.4 million from $393.3 million. Net loss was $28.2 million compared with net income of $178.1 million in the first quarter of 2022.