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.

Leaders Hail a “Watershed Moment”

Rayonier CEO Mark McHugh called the deal a natural evolution for both companies, saying:

“Rayonier and PotlatchDeltic share a deep commitment to sustainability and a legacy of excellence in maximizing land resources. We are confident this merger will generate meaningful long-term value.”

PotlatchDeltic CEO Eric Cremers described the transaction as “a watershed moment,” emphasizing how complementary assets and shared vision will “unlock opportunities and create strategic and financial benefits beyond what either company could achieve alone.”

Advisors and Timeline

Legal heavyweights are steering the merger: Wachtell Lipton Rosen & Katz is advising Rayonier, with partner David K. Lam leading the team, while Latham & Watkins LLP is guiding PotlatchDeltic through partners Tad Freese, Tessa Bernhardt, and Darren Guttenberg.

On the financial side, Morgan Stanley & Co. is serving as Rayonier’s adviser, and BofA Securities is representing PotlatchDeltic.

The deal, structured as a merger of equals, is slated to close in late Q1 or early Q2 2026, pending shareholder and regulatory approvals.