IronPlanet Breaks Records with September Sales Topping $99 Million

Online used-equipment marketplace IronPlanet broke records with its 23 September auction events with more than $99 million in sales on 9,890 items.

“September, 2016 was a record-breaking month, for the number of auctions that we held, the total number of bidders and buyers, as well as the total gross merchandise volume of over $99 million,” said Gregory Owens, IronPlanet chairman and CEO. “This is no doubt that we were able to achieve these stellar results due to our advanced data-drive technology platform, the power of our multiple online marketplaces, robust on-site auction events and the global reach of our more than 1.5 million registered users worldwide.”

Ritchie Bros. to acquire IronPlanet to accelerate its customer centric multi-channel diversification strategy

 

• Increases customer choice; enhances online offerings; provides penetration into large, additional segments
• Business combination expected to significantly increase growth in revenue and earnings; effectively uses strength of Ritchie Bros.’ balance sheet
• Transaction expected to be accretive to earnings within first year (excluding acquisition-related costs)
• Long-term alliance reached with Caterpillar
• With more than $US3 billion in annual online equipment sales, the combined company will rank among the world’s top 50 B2B e-commerce companies

VANCOUVER and PLEASANTON, CA, August 29, 2016 – Ritchie Bros. Auctioneers Incorporated, the world’s largest industrial auctioneer and a leading equipment distributor (NYSE & TSX: RBA, “Ritchie Bros.”), and IronPlanet®, a leading online marketplace for used heavy equipment and other durable asset sales, today jointly announced that they have entered into an agreement under which Ritchie Bros. will acquire IronPlanet for approximately US$758.5 million, subject to customary closing adjustments.

Founded in 1999, IronPlanet complements Ritchie Bros.’ primarily end-user customer base, as it focuses largely on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions.  It conducts its sales primarily through online-only platforms, with weekly online auctions and in other equipment marketplaces.  IronPlanet, a private company based in the United States, sold approximately US$787 million of Gross Merchandise Value (GMV)^[1] through their sales channels during 2015, and has achieved a 25.2% compounded growth rate in assets sold from 2013 through 2015.  This growth momentum has continued, with a 41% increase in GMV during the first half of 2016 relative to the same period in 2015. 

Check out some interesting global headlines around the construction and heavy equipment industry during the first part of July.

World Mining Equipment Market to Reach $156 Billion by 2022 - Report (Mining.com)

"The global mining equipment market is expected to garner $156 billion by 2022, increasing at a compound annual growth rate (CAGR) of 7.9% during 2016 – 2022, a new report published by Allied Market Research shows. According to the study, titled “World Mining Equipment Market – Opportunities and Forecasts, 2015 – 2022”, the Asia–Pacific region accounted for the highest revenue of over $50 billion in 2015, followed by Latin America, the Middle East and Africa (LAMEA)." Read more

Check out some interesting global headlines around the construction and heavy equipment industry as we close out the month of June.

Auctioneering Industry Thrives in Oil Downturn (Houston Chronicle)

"As the auctioneer's megaphone faded off in the distance, Cody Baker and Matthew Boykin had wandered far out to the edge of a 130-acre gravel lot to check out a row of man-lifts, the crawlers with big arms that elevate workers to high places. They hoisted hoods in the hot sun, poked at wiring, peered underneath to check for oil leaks, trying to find a few worth taking back to Midland to put to work in the oil fields." Read more

New Construction Starts Rise 5 Percent in May (Construction Equipment)

"Strong gains reported for public works, power plants, and multifamily housing." Read more

Check out some interesting global headlines around the construction and heavy equipment industry from the past two weeks.

 It's Game On at Vegas 'Dig This' (Construction Equipment Guide)

"The hosts at autoblog.com recently got the chance to check off an item off of their list of 1,000 Car Things to Do Before You Die, and that is to drive heavy equipment at Dig This, the Las Vegas Construction Equipment sandbox where “everyone from 8-108 can play.”  Read more

Milwaukee's Mining Equipment Manufacturers Try to Dig out of the Hole (Milwaukee Business News)

"There have been a lot of depressing headlines for the Milwaukee-area mining equipment manufacturing operations of Joy Global Inc. and Caterpillar Inc. over the past year. Milwaukee-based Joy posted a $1.2 billion loss last year, closed its Orchard Street plant, laid off the workers in its heavy fabrication and welding departments in September, and then closed those departments in May." Read more

Check out some interesting headlines around the construction and heavy equipment industry from the past two weeks.

Komatsu Equipment Awarded SHARP Certification (Construction Equipment Guide)
"Komatsu Equipment was awarded the prestigious Safety and Health Achievement Recognition Program (SHARP) Award at its Salt Lake City, Utah, facility on April 12. Komatsu Equipment is the first company to receive the certification in the heavy equipment industry in Utah and fourteenth overall company to become SHARP certified in the state." Read more

John Deere MyMaintenance App to Simplify Construction Equipment Maintenance (MachineFinder)

"The John Deere MyMaintenance mobile app was officially rolled out on May 12, providing a new machine maintenance tool to John Deere construction equipment owners and operators. The app, which can be downloaded for iOS and Android devices, is designed to work exclusively with John Deere machines that have an active JDLink ™ subscription." Read more

Save the date! Please join us Wednesday, June 8, 2016 for our upcoming Unreserved Public Auction in St. Augustine, Florida showcasing equipment from Southeastern dealers. Sellers are offering great deals on all items. Equipment is backed by IronPlanet’s IronClad Assurance® equipment condition certification. Also, certain Cat® equipment will be backed by the Cat Equipment Protection Plan. Onsite preview is available now through June 7, 2016. View equipment and detailed inspection reports.

IronPlanet^®, a leading online marketplace for selling and buying used equipment and other durable assets, today announced that Matt Ackley has been named senior vice president and chief marketing officer. Ackley comes to IronPlanet with 25 years of successful technology marketing experience with companies that include eBay, Google, Marin Software and FairMarket.

“Matt was an early innovator in online marketplace technology with extensive experience leading e-commerce brands and we are excited that he’s joining IronPlanet,” said Gregory J. Owens, IronPlanet chairman and CEO. “We look forward to leveraging his leadership and technical, data-driven perspective to continue growing our brands and adding more buyers to our more than 1.5 million registered users from around the world.”

An engineer by training, Ackley has led development and marketing organizations for major brands, such as eBay and Google, known disrupters of traditional industries. IronPlanet was founded in 1999 as an alternative to the high-cost, onsite traditional auction channels for used heavy equipment and has been a leader and innovator in that market, continually adding product and equipment categories. Ackley’s experience in product and industry marketing, along with his strategic vision in developing alternative revenue streams, will be assets as IronPlanet continues to grow and further add to its offerings.

Check out some interesting headlines around the industry from the past week.

Convergence Impact on Oilfield Services - Disrupting a $250 Billion Market (PR Newswire)
"As low oil prices give way to dwindling profit margins, strategies dictate organizations to curb inefficient practices and replace them with technologically advanced smart solutions. Connected oilfield services facilitate reduced drill time and increased productivity. The digital transformation has shifted focus to chasing efficiencies from the traditional one of chasing barrels. Business model disruptions to sell performance instead of equipment have taken over, as analytics becomes a strong part of the automation portfolio. The ICT industry has taken a leap of faith with the introduction of cognitive technologies through virtual assistants in oilfield services, taking artificial intelligence applications to a higher level." Read more

Save the date! On May 25, IronPlanet is selling specialized pipeline equipment located in Ballard, Utah, and Goodland, Kansas. This is a one-owner complete dispersal sale for R.J. Taylor-Wyatt. View all 500+ items for sale and their inspection reports. Look for items specific to pipeline projects such as: Cat® Pipelayers from D7Gs to 561s, Komatsu Excavators from PC290LC-10s to a PC200LC, Tesmec Trenchers from a TRS1475 to a Vermeer T850, plus trucks and trailers, and hundreds of miscellaneous shop tools and accessories.

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