Heritage Auction Galleries recently secured a new $45 million line of credit from Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A., and First United Bank & Trust, raising the company’s previous loan facility by $10 million.
“This increase is a vote of confidence in the continuing strength of our business,” said Steve Ivy, Co-Chairman of Heritage. “Even during the recession in 2008 and 2009, the worst since the 1930s, our business has remained strong. The stability of our business operations is unquestionable and we believe the expansion of our already broad credit line from Wells Fargo and First United speaks to that strength.”
The extended loan facility is added to Heritage’s more than $100 million in assets and more than $50 million in owner’s capital, along with several other healthy sources of capital and a record of clean certified opinions from auditors at KPMG that extends back 20 years.
“We’ve weathered the last few years as well as we have by keeping a balanced portfolio and a balanced approach,” said Ivy. “We’ve seen several auction categories set new records for category totals, and our business has had successful expansions into Beverly Hills and New York. There are very few, if any, other auction houses that can point to that kind of growth and consistent profitability since 2008. Add to this the fact that every single one of our consignors has been paid in full and on time and you can see why our banks have such confidence in us.”
Heritage’s fully engaged ownership, in the form of its five managing partners — Ivy, Jim Halperin, Greg Rohan, Marc Emory and Paul Minshull — have all worked at the company for at least 20 years apiece, and have focused on smart, stable expansion of the Heritage brand and reach into all corners of the globe. This has resulted in an ever-growing bidder-member base of more than 500,000 members in 161 countries.
“Our Website and real-time online bidding have been significant in the success of our global outreach,” said Ivy. “By providing bidders access to auctions and the ability to bid on lots in real time, no matter where they are in the world – as long as the right equipment is available – has led them to respond with considerable enthusiasm, which has translated into a strong bottom line. We see no reason why this shouldn’t continue to be the case going forward.”
Heritage Auctions, headed by Steve Ivy, Jim Halperin and Greg Rohan, is the world’s third largest auction house, with annual sales more than $600 million, and 500,000+ online bidder members. For more information about Heritage Auctions, and to join and gain access to a complete record of prices realized, along with full-color, enlargeable photos of each lot, please visit HA.com.