RISI acquires Random Lengths
The $18.2 million cash deal combines two of the industry’s leading lumber pricing providers.
RISI, Inc., an information provider for the global forest products industry, reported that its parent company – Euromoney Institutional Investor PLC – has acquired Random Lengths, a leading price reporting agency for the wood products industry.
Euromoney will pay $18.2 million in cash for Random Lengths, of which $2 million is deferred for up to 18 months. Pro forma EBITDA for the financial year 2018 is expected to be $1.1 million, RISI said in a prepared statement.
Random Lengths, based in Eugene, Ore., provides price assessments and market reporting for the global wood products industry, with a core focus on the North American lumber and panels markets, publishing over 1,500 prices each week. Founded in 1944, Random Lengths is expected compliment and expand RISI’s existing wood products price reporting, Euromoney said.
“Random Lengths is a leading source for prices in the lumber and panel markets, with a rich history of delivering trusted, unbiased insights,” said Daniel Klein, CEO of RISI. “We are excited for customers and the market to receive the most comprehensive offering of pricing data and information across the entire forest products supply chain, through the combination of RISI and Random Lengths, and as a core part of Euromoney’s cross-commodity PRA division.”
“Combining Random Lengths with RISI and Euromoney’s commodities price reporting organization is an exciting step,” said Jon Anderson, president of Random Lengths. “It enables Random Lengths’ customers and the market to continue relying on our price guides and market information, while enhancing Random Lengths’ business with RISI’s and Euromoney’s extensive resources and worldwide footprint.”
RISI’s Global Head of Price Reporting, Matt Graves, will relocate to Eugene to lead the integration, working directly with Jon Anderson and the Random Lengths team. Both organizations plan to continue their market reporting and publishing schedules as normal, Boston-based RISI said.
Each week HBS Dealer publishes the RISI Crow’s Construction Material Cost Index (CMCI), which provides the latest cost for lumber and panel products.
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