RB Global Ord Shs Stock Price, News & Analysis

Ritchie Bros. Auctioneers (NYSE: RBA) urges shareholders to vote in favor of its acquisition of IAA, Inc. (NYSE: IAA) at the upcoming Special Meeting on March 14, 2023. The deal could unlock up to $76 in incremental value per share, including $100 to $120 million in cost savings and $250 to $780 million in EBITDA growth opportunities. CEO Ann Fandozzi emphasizes the complementary nature of IAA's assets and the potential for significant financial benefits. Ritchie Bros. also counters criticisms from Luxor Capital Group, asserting that their analysis is flawed. Shareholders of record as of January 25, 2023, are eligible to vote.

Ritchie Bros. Auctioneers reported a record gross transaction value (GTV) of $6.0 billion for the full year 2022, marking a 9% year-over-year increase. The fourth quarter GTV rose 6% year-over-year to $1.5 billion. Total revenue also climbed 24% year-over-year to $443.9 million. Net income surged 110% for the year to $319.8 million, driven by a significant gain on property sales. Adjusted EBITDA increased by 21% to $465.2 million. The company anticipates positive impacts from the upcoming IAA acquisition.

On February 14-16, Ritchie Bros. held a successful auction in Houston, TX, attracting over 14,500 bidders for more than 6,500 items and generating a gross transaction value exceeding US$61 million. Approximately 87% of the equipment was sold to U.S. buyers, with 48% purchased by Texans. The auction featured a diverse range of assets, including transportation and construction equipment, all sold without minimum bids. Regional Sales Manager Chuck Roberson reported strong prices and high satisfaction among sellers, prompting interest in future events. Upcoming auctions include a Premier Global Auction in Orlando, FL, with over 13,000 items available.

Eminence Capital, a significant shareholder of Ritchie Bros Auctioneers (RBA), publicly announced its intention to vote against RBA's proposed $7.3 billion merger with IAA, Inc. Eminence highlights concerns over the transaction's strategic value, citing risks that outweigh potential benefits. They argue the merger lacks a strong logic due to limited synergies and significant differences between the companies. Additionally, they express skepticism about the deal’s ability to improve IAA’s competitive position and foresee a burden of risk for RBA shareholders. Since the announcement, RBA shares have underperformed the market by 8%, indicating investor apprehension.

Discerene Group LP, which holds approximately 3.6% of IAA's shares, announced its intention to vote against the revised sale of IAA to Ritchie Bros. Auctioneers (RBA). Discerene criticized RBA's revised offer of $44.40 per share as inadequate, claiming it's lower than previous offers and undervalues IAA’s strong financial prospects. The letter outlines concerns over IAA's flawed sale process, poor governance, and lack of strategic rationale behind the sale. Discerene believes IAA's independent growth potential is significant, particularly with an estimated EBITDA growth and market share gains expected over the coming years.

Ritchie Bros. has announced a Special Meeting of Shareholders on March 14, 2023, to vote on the acquisition of IAA, which is expected to create substantial value, potentially adding up to $76 per share. CEO Ann Fandozzi highlighted the support from key shareholders, including a $500 million investment from Starboard Value LP. The acquisition aims to accelerate Ritchie Bros.' transformation into a global marketplace and enhance growth opportunities. The integration of IAA's yard footprint is anticipated to lower costs and improve returns. The amended agreement with IAA reflects shareholder feedback, ensuring greater value for Ritchie Bros. shareholders.

Ritchie Bros. Auctioneers announced preliminary unaudited financial results for Q4 and full year 2022. The Company reported an estimated gross transaction value of $6.0 billion and total revenue of approximately $1.7 billion for the year. Net income is projected to be between $317 million and $320 million, with adjusted EBITDA between $461 million and $465 million. For Q4, expected GTV is around $1.5 billion with total revenue of about $444 million and net income between $42 million and $45 million. The results reflect solid execution and a focus on customer service, with expectations of closing the IAA transaction soon.

Ancora Holdings Group, owning 4% of IAA, Inc. and 0.5% of Ritchie Bros., asserts that the recently revised terms of the proposed IAA-Ritchie Bros. merger present shareholders with a compelling long-term value opportunity. The group responds to criticisms from Luxor Capital Group, labeling them as misleading and self-serving. Ancora emphasizes the necessity of the merger and believes it to be beneficial for stakeholders involved. Investors are encouraged to review Ancora's detailed presentation for further insights.

Ritchie Bros is set to showcase its updated inventory management system at CONEXPO-CON/AGG in Las Vegas this March. The company will demonstrate a full suite of services aimed at improving equipment lifecycle management. Key features include a new version of the inventory system powered by Rouse Services, transportation solutions, and financing options. Ritchie Bros. CEO Ann Fandozzi expressed excitement about collaborating with industry partners and highlighted a special simulcast auction during the event. The company aims to enhance customer transaction experiences with integrated insights and services.