Ritchie Bros Expands In EMEA Region With Acquisition Of Euro Auctions For $1.08B

Ritchie Bros Auctioneers Inc (NYSE:RBA) has agreed to acquire Euro Auctions, a European plant and machinery auction house, for an enterprise value of £775 million (~$1.08 billion).
Euro Auctions conducts unreserved heavy equipment auctions with onsite and online bidding under the brand's Euro Auctions and Yoder & Frey, with 200+ employees in 14 countries.
Ritchie Bros. will be retaining Euro Auctions employees and its brand.
This acquisition significantly accelerates Ritchie Bros' strategy to drive revenue and earnings growth and add shareholder value by expanding capabilities in new channels, sectors, regions, and customer segments.
The transaction value represents an implied multiple of ~15.3x 2021E EBITDA (non-GAAP measure), including run-rate synergies.
Ritchie Bros expects to have an adjusted net debt to adjusted EBITDA ratio (non-GAAP measure) of approximately 3.9x, post-closing.
The transaction will close in late 2021 or early 2022.
Ritchie Bros. intends to finance the transaction through a combination of cash on hand and new debt. It held cash and cash equivalents, including restricted cash, of $442.6 million.
Euro Auctions Founder and Director Derek Keys will continue to be involved for a minimum of three years post-closing. Jonnie Keys will assume a senior leadership position, and Lynden and Trevor Keys will be retained as sourcing leads.
Price Action: RBA shares closed at $58.28 on Friday.