Random Lengths, the lumber industry’s most-used source for price information, has a new owner. Euromoney Institutional Investor, the business information and events group that includes RISI, announced Aug. 2 it bought Random Lengths for $18.2 million in cash.
Of that $18.2 million, a total of $2 million is deferred for up to 18 months. Random Lengths’ pro forma EBITDA (earnings before interest, taxes, depreciation, and amortization) for the year ending Sept. 30 is expected to be $1.1 million, Euromoney said in news release. That pro forma EBITDA excludes one-off transaction costs and includes “a full year of anticipated synergies under Euromoney ownership,” the company said.
Euromoney bought RISI in April 2017. The acquisition of Eugene, Ore.-based “fits within Euromoney’s strategy of investing in its main themes, specifically, price discovery,” Euromoney’s news release said. It quoted Raju Daswani, CEO of Euromoney’s Price Reporting Agency Division, as saying: “The acquisition of Random Lengths is an important step in our strategy to be a leading global cross-commodity PRA business for the markets we serve. … By integrating [RISI and Random Lengths] alongside our metals & mining services, we will further establish our position as a global leader in the commodity price reporting industry. “