Ritchie Bros. Inc. completes acquisition of IAA Inc. for US$7.3B

On March 20, 2023, Ritchie Bros. Auctioneers Incorporated (“RBA”) completed the acquisition of IAA Inc. in a stock and cash transaction valued at approximately US$7.3 billion. Under terms of the transaction, IAA shareholders would get $12.80 per share in cash and 0.5252 common shares of RBA for each share of IAA common stock they own.

The acquisition was partially financed by an offering by RBA’s subsidiary, Ritchie Bros. Holdings Inc., of (a) US$550 million aggregate principal amount of 6.750% senior secured notes due March 15, 2028 and (b) US$800 million aggregate principal amount of 7.750% senior notes due March 15, 2031.

RBA, based in Vancouver, British Columbia, is a heavy equipment and machinery auctioneer.

IAA Inc., based in Westchester, Illinois, is a digital platform for buying and selling used motor vehicles and parts.

McCarthy Tétrault advised RBA with a team led by David Frost and including Glynnis Morgan, Andrew Parker, Shea Small, Jennifer Longhurst, Gerald Gaunt, Thomas Fung, Simran Choongh, Kara Bodie and Micky Hoskin (Business), Kim Brown, Jeremy Ho, Randy Schwartz, Simon Douville and Darren Chung (Tax), Liezl Behm, Francois Dupuis and Xinya Wang (Financial Services), and Jason Gudofsky, Gideon Kwinter and Will Rooney (Competition).