Shareholders of Canada’s Ritchie Bros. Auctioneers (RBA) have approved the $7.3 billion U.S. acquisition of American automotive salvage company IAA (IAA).
IAA shareholders also approved the deal, clearing a path for the acquisition to now be completed.
The approvals end months of contentious debate about the acquisition. Several Ritchie Bros. shareholders had expressed concerns about the deal and said they planned to vote against it.
Shareholder advisory firms Glass Lewis and Institutional Shareholder Services had both recommended that Ritchie Bros. stockholders vote against the purchase of IAA.
Chief among the concerns are plans by Burnaby, British Columbia-based Ritchie Bros. to now move its headquarters to the U.S.
In business since 1958, Ritchie Bros. today primarily conducts industrial auctions that sell equipment and vehicles to bidders from around the world.
Ritchie Bros. has offered to pay $12.80 U.S. per share in cash and 52.52% of a Ritchie Bros. share for each IAA share that it does not already own.
Ritchie Bros. also plans to pay a special one-time dividend of $1.08 U.S. to its own shareholders once the IAA acquisition is finalized.
After the deal is completed, IAA shareholders will own 37.2% of the combined company and Ritchie Bros. shareholders will own 62.8%.
Ritchie Bros. stock has declined 16% to $73.14 since the deal to acquire IAA was first announced last November.
IAA’s stock has risen 17% to $40.27 U.S. per share since the acquisition was announced.
