Ritchie CEO Defends US Auto Deal After Record Stock Decline

Ritchie Bros. Auctioneers Inc.’s top executive defended the company’s decision to buy US auto retailer IAA Inc. for $6.2 billion, saying the business is less cyclical than investors believe.

The Canadian auction company’s shares fell nearly 18% in New York on Monday, the most on record, after the cash-and-stock deal was announced.

“No CEO would be happy to see their stock performance today, and I’m no exception. But this deal is about the future,” Chief Executive Officer Ann Fandozzi said in an interview with BNN Bloomberg Television.

Ritchie Bros. Auctioneers CEO Executive Officer Ann Fandozzi speaks on BNN Bloomberg.

Source: Bloomberg

Ritchie, based in Burnaby, British Columbia, runs auctions for used heavy ...