A new strategic partnership between the two auction houses Sotheby's and RM Auctions was recently announced. Sotheby's acquires a 25% ownership stake in the world's leading collector car auction house, which will soon be known as RM Sotheby's.
The market is growing and growing
The reason for this long-term investment is the steady growth of the more than 2 billion dollar market for exclusive automobiles. dollar market for exclusive automobiles, which will open further doors for both companies. RM and Sotheby's have previously collaborated on numerous auctions in Europe and the USA, most notably the "Art of the Automobile" auction in New York in November 2013, which achieved almost 63 million dollars in just two hours and set a new auction record for a Ferrari 250 LM for no less than 14.3 million dollars.
First joint auction in Amelia Island
This announcement now fully unites the two companies. The first RM Sotheby's auction will take place in Amelia Island, Florida/USA on March 14, 2015. Additional auctions will be held in Fort Worth in Texas/USA, Lake Como in Italy, Monterey in California, London in England and New York in the USA and many more auctions are planned for 2015.
Joining the market leader
According to the President, Chairman and CEO of Sotheby's Bill Ruprecht, they are thrilled to be joining the market leader in this field. RM has secured a strong position in the market, which will only be strengthened by this partnership. Just last year, RM set a new benchmark with its flagship auction in Monterey; it realized 140 million dollars, clearly eclipsing its previous record from 2013.
Success is pre-programmed
The synergy between the two companies is now even stronger, as they share many top collectors and the common goal of focusing on new markets. They are also working together to increase the number of collectors of classic vehicles. RM has built a strong reputation at the top end of the classic car market and Sotheby's also has a great global client network, so together they are aiming for great success at a time when the market for cars as an investment has never been stronger.
Creating a global platform for collector cars
Rob Myers, Chairman and Founder of RM Auctions adds that this partnership is undoubtedly the most effective way for RM to reach the ever-growing audience with an interest in the collector car investment market around the world. No other organization in the world has such a great client network as Sotheby's and with the successful collaborations from previous years, the partnership makes perfect sense as it will create a global platform for collector cars.
Initially only 25 percent
Initially, Sotheby's will carry a 25% stake in RM as well as participation in the company's governance and a comprehensive partnership agreement to drive growth. Over time, however, Sotheby's will have the opportunity to increase this stake as the partnership develops and grows.
