Ritchie Bros. Q3 Adj. Profit Rises; Ritchie Bros. To Acquire IAA

(RTTNews) - Ritchie Bros. Auctioneers Incorporated (RBA, RBA.TO) reported that its third quarter adjusted earnings per share increased 18% year-over year to $0.53. Analysts polled by Thomson Reuters expected the company to report profit per share of $0.49, for the quarter. Analysts' estimates typically exclude special items. Net income increased 33% to $42.9 million. Earnings per share increased 31% to $0.38.

Total revenue increased 25% year-over-year to $411.5 million. Gross transaction value increased 7% to $1.4 billion or 10% when excluding the impact of foreign exchange. Analysts on average had estimated $485.92 million in revenue.

Separately, Ritchie Bros. and IAA, Inc. (IAA) announced they have entered into a definitive agreement under which Ritchie Bros. will acquire IAA in a stock and cash transaction valued at approximately $7.3 billion including the assumption of $1.0 billion of net debt. IAA stockholders will receive $10.00 in cash and 0.5804 shares of Ritchie Bros. common stock for each share of IAA common stock they own. The purchase price is valued at $46.88 per share. Upon completion, Ritchie Bros. stockholders will own approximately 59% of the combined company and IAA stockholders will own approximately 41%.

The acquisition is expected to be accretive to Ritchie Bros.' adjusted earnings per share by low single digits in the first full year following the transaction close and mid-teens accretive after that. Ann Fandozzi will continue to serve as CEO.

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