IronPlanet to merge with Cat Auction Services
Caterpillar merger is the latest in a long line of expansion activities from IronPlanet
IronPlanet has revealed plans to merge with Cat Auction Services.
The merger follows IronPlanet’s November acquisition of Kruse Energy and Equipment Auctioneers, and represents the latest in a long line of expansion efforts by the online equipment auctioneer.
The companies contend that their affiliation will result in “a unique auction experience, backed by technology, services, and equipment expertise unmatched in the industry”.
“I am very excited about the combination of IronPlanet and Cat Auction Services, two trusted partners in helping buyers and sellers with their used heavy equipment acquisition and disposition needs,” commented Gregory J Owens, chairman and CEO of IronPlanet.
“The power of IronPlanet’s technology, multiple marketplace formats, and global buyer base, coupled with Cat Auction Services’ live, onsite auction format and deep equipment expertise, will provide the most powerful and complete suite of auction remarketing tools in the industry,” he added.
Together, IronPlanet and Cat Auction Services aim integrate the former’s online marketplaces with the latter’s live auction format.
“The live auction format from Cat Auction Services, along with IronPlanet’s online marketplaces, will give our customers the innovative solutions that they are looking for to meet inventory management requirements,” explained Gary Trettel, Cat Auction Services’ president and CEO.
“This is a very significant merger as both companies are industry leading and clearly complement each other. We have a unique opportunity to transform our business and position ourselves to meet the growing demand of our customers for better technology, tools, and services when buying and selling heavy equipment,” he said.
In addition to its aforementioned Kruse acquisition, IronPlanet has formed strategic alliances with Mascus, GraysOnline, and ClearAsset during the course of the past two years. William L Hoeft, chairman of Cat Auction Services, is confident that the latest merger will prove beneficial for both companies.
“Cat Auction Services was started in 2008 to give Cat dealers another distribution channel for used equipment sales, as well as to keep our customers connected with the Caterpillar family of products and dealerships,” he said.
“We are pleased to have reached this agreement as the merger will capitalise on both companies’ strengths,” added Hoeft.
Under the terms of the agreement, Owens will be chairman and CEO of the combined entity and the company will retain its California headquarters in the United States. Trettel will continue to oversee Cat Auction Services’ live auction format, as well as serving on the Executive Committee of IronPlanet.
The transaction is subject to regulatory approval and other standard closing conditions, and is anticipated to be completed during the first quarter of 2015.