M&A · Industrials · Retail-Auto Dealers & Gasoline Stations
Ritchie Bros Auctioneers Inc to acquire IAA, Inc.
Announced Nov 7, 2022 · Closed Mar 21, 2023
Deal value$7.30BEV $7.26B
Premium19.0%To unaffected price
EV / Adj. EBITDA13.3x3.5x EV / Revenue
ConsiderationCash and stock$46.88 per share
Transaction
- Acquirer
- Ritchie Bros Auctioneers Inc (RBA)
- Target
- IAA, Inc. (IAA)
- Buyer type
- Strategic
- Offer price per share
- $46.88
- Enterprise value
- $7.26B
- Status
- Closed Mar 21, 2023
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- Committed · Goldman Sachs, BofA Securities, RBC Capital Markets
Advisors
- To the acquirer
- Goldman Sachs, Guggenheim, Evercore, RBC Capital Markets
- To the target
- JPMorgan
- Guggenheim fee
- $2.5M
Sector context · Industrials
- Comparable deals
- 81 in the prior 24 months
- Premium
- 19.0% vs. 47.6% sector median
- EV / Adj. EBITDA
- 13.3x vs. 11.1x sector median
- Break fee
- Sector median 2.8%
Timeline
- AnnouncedNov 7, 2022
- Proxy filedFeb 10, 2023
- Definitive proxyFeb 10, 2023
- Shareholder voteMar 14, 2023
- ClosedMar 21, 2023
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$41.00$66.00
Discounted cash flowGoldman Sachs$47.00$75.00
Future share priceGoldman Sachs$35.00$47.00
Premiums paidGoldman Sachs$46.00$58.00
Discounted cash flowGoldman Sachs$65.00$86.00
Discounted cash flowGuggenheim$37.00$60.00
Discounted cash flowGuggenheim$44.00$72.00
Trading comparablesGuggenheim$40.00$66.00
Trading comparablesGuggenheim$42.00$65.00
Trading comparablesGuggenheim$42.00$66.00
Offer $46.88
Implied value per IAA, Inc. share by analysis, from Goldman Sachs and Guggenheim · DCF discount rate 8.5%–10.5%.