Caterpillar enters formal alliance with Ritchie Bros auctioneers

Caterpillar has entered into a strategic alliance with Ritchie Bros following the auctioneer’s recent acquisition of IronPlanet, an online marketplace for heavy equipment, for approximately $759.5m.

Under terms originally announced by Ritchie Bros with its acquisition bid for IronPlanet in September 2016, the auctioneer will now become the manufacturer’s preferred global partner for onsite and online auctions for an initial five-year period.

Ritchie Bros will now provide Caterpillar and its dealers with access to its in-house platforms with the aim of enhancing the exchange of information and services between customers, dealers and suppliers.

Rob Charter, group president for Caterpillar’s Customer and Dealer Support, said, “This alliance will ensure that more used equipment buyers have access to support through the Cat dealer network.”

The alliance is also expected to strengthen the relationship Ritchie Bros has with independent Cat dealers around the world by providing them with continued access to its global auction marketplace.

Ravi Saligram, CEO of Ritchie Bros, commented: “Our marketing capabilities, unrivalled suite of technology and powerful multi-channel transactional platforms will add tremendous value and make us a trusted strategic partner to the Caterpillar family.”

It is also hoped that this will accelerate the delivery of Caterpillar’s connectivity to Caterpillar fleet across the globe, and ultimately improve customer fleet utilisation.

Charter noted: “Caterpillar currently has the largest connected industrial fleet in the world and the strategic alliance with Ritchie Bros will help strengthen this key element of our digital strategy. Through this alliance, we will now be able to retrofit used Cat assets with new technology.”

Prior to the acquisition, Caterpillar and its dealers owned a minority position in IronPlanet.

IronPlanet was established as an auctioneer in 1999, and sold around $787m of equipment in 2015. Together, Ritchie Bros and IronPlanet sold $3bn of equipment in the 12 months ending in June 2016.