Tag Archive for 'Ritchie Bros.'

Ritchie Bros. and Caterpillar Inc. Announce Strategic Alliance

Ritchie Bros. to Become Preferred Provider to Caterpillar and Participating Dealers for Caterpillar Equipment Upon Closing of Ritchie Bros.’ Acquisition of IronPlanetStrategic Relationship to Accelerate Caterpillar’s IoT Connectivity Offerings for Used Equipment Owners
VANCOUVER and PEORIA, IL, Aug. 29, 2016 /CNW/ – 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.

Ritchie Bros. Columbus, Ohio Auction Site Hosting United Rentals Equipment Inspections Prior To Six-City Auction

Public invited to inspect items in Columbus ahead of November 2nd Maryland auction

Ritchie Bros. Auctioneers (NYSE and TSX: RBA), the world’s largest industrial auctioneer, will conduct a one-owner public auction for United Rentals, Inc. (“United Rentals”) — the world’s largest equipment rental company – on November 2, 2011. More than 575 lifting, aerial and general equipment rental items are located at six different locations in the Mid-Atlantic, including more than 70 equipment items at the Ritchie Bros. auction site in Columbus, Ohio.

The auction itself takes place at the Ritchie Bros. permanent auction site in North East, MD on November 2, and interested buyers can inspect the equipment – and pick-up the items after purchase – at United Rentals locations in NY, NJ, GA, and CT as well as at Ritchie Bros. auction sites in MD and OH. They can also view detailed equipment information on the Company’s website at rbauction.com. All the equipment items will be sold to the highest bidders on auction day – regardless of price. There are no minimum bids and no reserve prices for the items being sold. All equipment items are being sold “as is, where is”. Bids can be made in person at the North East auction site, online in real time at www.rbauction.com or by proxy.

“We have a very sophisticated schedule of preventative maintenance that is second to none,” said Kevin Parr, Eastern Regional Vice President for United Rentals. “Most of the equipment in this auction is not even half-life; there is a nice blend of equipment across many equipment categories.”

Ritchie Bros. Columbus, OH auction site (70+ equipment items, including crawler tractors, loader backhoes, skid steer loaders, trenchers, boom lifts, scissorlifts, forklifts, and more):

200 Ritchie Drive, South Vienna, OH

Tel: 937-568-9500, M-F, 8am-5pm with extended hours on Oct. 29/30

* More info about the other five locations and the auction itself is available at www.rbauction.com/unitedrentals

Prospect Of Prosperity…

It’s easy for us to forget that our economic condition has an impact on our Canadian neighbors. But, it does, especially in some industries. Construction equipment manufacturers and their dealers are hurting. And for some the immediate future isn’t as good as we might think.

With the economy stalling and construction projects shutting down for want of funds, prospects for heavy equipment manufacturers and their dealers aren’t rosy, states Ian Harvey, a correspondent for Daily Commercial News, a Canadian construction journal.

Most are anxiously waiting to see which way the chips will fall: Will Stimulus Packages announced by governments around the world include enough infrastructure projects to trigger investments in new equipment or will they fall short of expectations with money going to shore up social safety nets and training programs? It’s the trillion-dollar question and so far the news isn’t entirely positive.

“No one has a crystal ball but at first blush, from what I’ve seen in the headlines, there’s not as much infrastructure as I’d have anticipated,” says Craig J. Olson of John Deere’s Construction & Forestry Division in Illinois. “With infrastructure crumbling the way it is in America you could easily spend $100 billion on bridges alone and $100 billion on wind power, airports or the power grid.

He says there are many projects across the continent that have completed engineering studies and environmental assessments and are just waiting on funding.

“Still, despite the economy, we think we will do all right,” he says. “We’ve continued to innovate and we have some new products coming out which will help.”

(Note: Early next week John Deere Construction Equipment will be hosting a press event in Phoenix, AZ for the introduction of several new products.)

The trend is clearly downward as the Associated General Contractors of America (AGC) noted in a December member survey of 236 respondents who reported they had seen or expect a downturn in highway (93 per cent); building (92 per cent); utility (84 per cent); water resources (78 per cent); other public work (91 per cent); and private construction (96 per cent).

Three-quarters had lain off workers in the past 6-12 months as a result of the downturn; the median response was about 30 per cent of the workforce laid off. Worse still, nearly two-thirds expect further layoffs in the next six to 12 months. However, 86 per cent said if their state received extra federal funding and was able to put additional projects out to bid, they would avert layoffs and/or hire additional workers.

Finning, a Vancouver-based heavy equipment dealer also laid off more than 500 employees from a head count of more than 12, 000 globally.

Peter Blake, CEO of heavy equipment auctioneer Ritchie Brothers, says either way heavy metal will still sell. “We’ve been around for a while and through a few of these cycles,” he says. “And we have good growth in good time and do better in bad times.”

Ritchie has about $3.5 billion of the $100-billion global heavy equipment market. While about half of its 2008 revenues of $3.57 billion (up 12 per cent over 2007 from 193 industrial and 147 agricultural auctions), come from the U.S.; Canada accounts for about 15 per cent, as do Europe, Dubai and Australia.

The other equipment sector that could swing either way is the rental market. While Hertz, United Rentals and others are all feeling the pinch, there’s some hope that instead of buying or long term leasing equipment, contractors will rent on an as needed basis.

(Note: The American Rental Association (ARA) will be having its annual convention and The Rental Show next week in Atlanta, GA. It will be interesting to see how the attendees feel about the economy, the Stimulus Package and the future of the industry.)

“There are a lot of companies in distress trying to sell equipment but I’m not sure there are willing buyers,” says Ken Simonson, chief economist for AGC.

However, he says if the Stimulus Package does inspire an increase in construction activity, he suspects rental companies may be the first beneficiaries.

“That would be my guess,” says Simonson. “If they do win contracts they’ll either dust off the machinery they have parked, rent or buy used before they spend on some new fancy stuff which is probably going to impact the dealers and manufacturers. Then there’s also the question of whether they can thaw the credit market enough so that those looking to buy or lease can get some help.”

One of the common comments that came from many attendees at the recent World of Concrete show in Las Vegas was that they were ready to buy but there was a noticeable shortage of financing immediately available. Maybe that’s because there were too many golden, how about platinum, parachutes drifting across the banking world’s skies.

Greg Sitek