RB GLOBAL INC. (RBA)

Ritchie Bros. Auctioneers Incorporated (NYSE & TSX: RBA) was founded in 1958 in Kelowna, British Columbia, Canada, and describes itself as a world leader in asset management and disposition technologies for commercial assets, used equipment and other assets. Through unreserved auctions, online marketplaces, listings and private brokerage services, it sells a broad range of primarily used commercial and industrial assets, as well as government surplus. Construction and commercial transportation assets make up the majority of equipment sold by gross transaction value (GTV). Its stated strategy is to become the trusted global marketplace for insights, services and transaction solutions for commercial assets and vehicles, resting on five pillars: customer experience, employee experience, modern cloud-based architecture, an Inventory Management System, and accelerated growth.

The Auctions and Marketplaces (A&M) segment includes live unreserved onsite auctions with online simulcast, where the company has care, custody and control of consignors' assets. It also includes online marketplaces offering multiple price and timing options, an online marketplace for government and military assets, and a brokerage service for confidential, negotiated sales of large equipment. Consignors can choose straight commission contracts, guarantee contracts or inventory contracts. The last two are called underwritten or "at-risk" contracts, and they were about 19% of GTV in 2022. Value-added services include equipment financing, appraisals and inspections, online listings, logistics, refurbishment, title searches, 360-degree video inspections, IronClad Assurance condition certification, and access to insurance and powertrain warranties. The company also offers market data intelligence, performance benchmarking, an equipment lifecycle management platform with parts procurement integration for OEMs and dealers, and a software-as-a-service parts procurement platform with digital catalogs.

Customers selling through its channels include end users such as construction companies, equipment dealers, original equipment manufacturers, and other owners such as rental companies. They operate in construction, commercial transportation, agriculture, energy and natural resources. The company has locations in 13 countries, including the U.S., Canada, Australia, the United Arab Emirates and the Netherlands. It also has a presence in 42 countries where customers can sell from their own yards. It employs more than 2,800 full-time employees.

On November 7, 2022, the company agreed to acquire IAA, Inc., a global digital vehicle marketplace, for $12.80 in cash and 0.5252 Ritchie Bros. common shares per IAA share. This implies about 70.3 million shares issued and about $1.7 billion in cash, plus repayment of about $1.2 billion of IAA net debt. Closing is expected in the first half of 2023, subject to shareholder approvals and other conditions. The company expects to fund the cash portion with cash, credit facility borrowings (including a term loan A of up to $1.8 billion) and debt securities. The company says the deal would give it a significant presence in vehicle remarketing. Operations have been affected by inflation, supply chain constraints and tight equipment supply. The company has no operations in Russia or Ukraine.