Rayonier Inc. has agreed to acquire PotlatchDeltic Corp. in an all-stock deal valued at approximately $3.4 billion, forming the second-largest publicly traded timber and wood products company in North America, according to James Herron of Bloomberg. The merged company will control 4.2 million acres across 11 U.S. states and operate seven wood product facilities. Rayonier shareholders will own 54% of the new entity, which will be led by Rayonier CEO Mark McHugh. The headquarters will be in Atlanta, with regional offices in Spokane and Florida. The deal coincides with the start of new US tariffs on imported wood, aimed at boosting domestic production amid weak market conditions and oversupply. Herron writes:
Rayonier Inc. agreed to buy PotlatchDeltic Corp. in an all-stock deal valued at about $3.4 billion that would create the second-largest publicly traded timber and wood products company in North America.
Under terms of the deal, PotlatchDeltic holders will receive 1.7339 shares of Rayonier for each of their shares, the companies said in a statement Tuesday. That would imply a 7.8% premium to PotlatchDeltic’s closing price. […]
The deal will create a new company with 4.2 million acres of land across 11 states. It will operate seven wood products manufacturing facilities, including six lumber mills with total capacity of 1.2 billion board feet and one industrial plywood mill. […]
The deal will “create significant strategic and financial benefits beyond what could be achieved by either company independently,” Cremers said in the statement.
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