01:22 PM EDT, 03/11/2025 (MT Newswires) -- (Updates with analyst comments in paragraphs 2, 5 and 6, shares in the last paragraph)

RB Global ( RBA ) on Tuesday said it agreed to acquire J.M. Wood Auction for an undisclosed amount.

National Bank of Canada analysts said that the purchase price stands at US$235 million, plus the cost value of the assets currently held for auction, subject to post-closing adjustments. "Two-thirds of the purchase price will be paid at closing, with the remaining portion paid out in equal installments on the first, second and third anniversaries of the closing date, which should align the parties' interests during the transition and integration period."

"This move enhances our geographic coverage in Alabama and adjacent states and brings along the Wood family and their talented team of sales professionals with deep local relationships on board," said RB Global ( RBA ) Chief Executive Jim Kessler.

The company expects the deal to be completed in the second quarter.

Assuming a revenue-to-gross transaction value conversion of 20% and 30% EBITDA margins, the acquisition would add US$64 million and US$19.2 million in annualized revenue and EBITDA, respectively, with an implied valuation of 12.2 times enterprise value/last twelve months EBITDA, representing a "small but highly accretive addition to the platform," the bank added.

Analyst Maxim Sytchev said the outperform-rated company remains one of its "top ideas for 2025 as an uncertain economic backdrop plays right into the investment thesis."

Shares of the company were last seen down $0.17 to $143.59 on the Toronto Stock Exchange.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 143.45, Change: -0.31, Percent Change: -0.22