In a landmark move that reshapes North America’s timber and forest products landscape, Rayonier Inc. and PotlatchDeltic Corp. announced Tuesday they will merge in an all-stock deal valued at $8.2 billion, forming one of the continent’s largest publicly traded timber and wood products companies.
The merger — unanimously approved by both boards — will combine two giants rooted in sustainability and resource management. The agreement includes $1.1 billion in net debt and values PotlatchDeltic shares at an 8.25% premium, or $44.11 per share, based on Rayonier’s October 10 closing price.
The transaction will see PotlatchDeltic shareholders receive 1.7339 Rayonier shares for each of their own. Post-closing, Rayonier investors will hold about 54% of the merged company, while PotlatchDeltic shareholders will own the remaining 46%.
A Forest Industry Powerhouse
The newly combined company will be headquartered in Atlanta, with regional offices in Spokane, Washington, and Wildlight, Florida, and is expected to unveil a new name before the deal’s completion. Together, they will manage 4.2 million acres of timberland across 11 states, including 3.2 million acres in the U.S. South and 931,000 acres in the Pacific Northwest.
The merged company will also oversee seven wood products manufacturing facilities and two real estate businesses with development projects in Arkansas, Florida, and Georgia. Both firms anticipate $40 million in annual cost synergies within two years of closing.
