Ritchie Bros. Auctioneers says it has signed a deal to acquire U.S. company IAA in a transaction valued at about US$7.3 billion including the assumption of US$1.0 billion of net debt.
Ritchie Bros. Auctioneers Inc. says it has signed a deal to acquire U.S. company IAA Inc. in a transaction valued at about US$7.3 billion including the assumption of US$1.0 billion of net debt."Their highly complementary business in an adjacent vertical will allow us to unlock additional growth," said Ritchie Bros. chief executive Ann Fandozzi, who will be CEO of the combined company.
The purchase price, valued at US$46.88 per share, represents a premium of about 19 per cent to IAA's closing share price on Friday. The deal will see IAA CEO and president John Kett and three other current members of the IAA board join the Ritchie Bros. board once the transaction is complete, while Ritchie Bros. chairman Erik Olsson will remain chairman.
The deal is expected to close in the first half of next year, subject to approval by the shareholders of both companies as well as regulatory approvals and other customary closing conditions.