Ritchie Bros. entered into a securities purchase agreement with Starboard Value and certain of its affiliates pursuant to which Starboard will make a concurrent $485 million convertible preferred equity and $15 million common share investment in Ritchie Bros.
In connection with the investment, Jeffrey Smith, CEO of Starboard, will join the board of directors of Ritchie Bros. following the later of the required approvals by Ritchie Bros. shareholders and IAA shareholders in connection with the pending acquisition of IAA by Ritchie Bros.
“We welcome Starboard’s strategic investment in Ritchie Bros., which we believe will provide us with additional financial flexibility,” Ann Fandozzi, CEO of Ritchie Bros., said. “Starboard shares our belief in the potential of the combination of Ritchie Bros. and IAA. We look forward to benefitting from Jeff’s expertise and working together as we complete this transaction, which we believe will deliver significant value to all our shareholders.”
“We are excited to become a shareholder of Ritchie Bros. as they take this important next step to accelerate the company’s transformation and value-creation trajectory,” Smith said. “We were investors in IAA’s parent company prior to its spinout, so we know IAA well and are strong believers in the fundamentals of the business and the market opportunities that this transaction creates. We believe that, with Ritchie Bros.’ leadership expertise, marketplace investments, yard footprint and comprehensive suite of solutions, they will be able to accelerate growth in each vertical. We are eager to work with the Ritchie Bros. team to ensure that the combined company executes on the significant synergy and growth opportunities outlined by Ritchie Bros. in today’s investor presentation.”
