Rayonier Inc. has successfully completed the sale of its 77% interest in the New Zealand joint venture to a special purpose vehicle owned by an investment fund managed by the Rohatyn Group (TRG) for a purchase price of $710 million. The net proceeds to Rayonier, after adjustments, are expected to be $699 million. This sale is part of Rayonier's asset disposition and capital structure realignment plan, which has seen the company exceed its original $1 billion target by completing roughly $1.45 billion of dispositions since November 2023.
In terms of capital allocation, Rayonier plans to use at least 50% of the proceeds to reduce leverage and/or return capital to shareholders through special dividends and share repurchases. The remaining proceeds are expected to be utilized for potential reinvestment into synergistic acquisitions or additional share buybacks.
During the second quarter of 2025, Rayonier repurchased approximately 1.5 million shares for a total of around $35 million, leaving the company with approximately $262 million remaining under its current share repurchase authorization as of June 30, 2025.
Mark McHugh, President and CEO of Rayonier, expressed his satisfaction with the success of the disposition plan, stating that it has allowed the company to achieve its new leverage target in a manner that has been accretive to both CAD and NAV per share. This positions Rayonier to create long-term value for its shareholders going forward.
It's noteworthy that Rayonier had previously reclassified its New Zealand business to discontinued operations on its consolidated financial statements, and the updated financial outlook provided in conjunction with the company’s first quarter results on April 30 excluded contributions from the New Zealand business.
Rayonier's updated financial outlook indicates the company's commitment to enhancing shareholder value and optimizing its capital structure, and it will be interesting to see how the deployment of the proceeds from the sale will impact the company's future performance and strategic direction. Today the company's shares have moved -0.5% to a price of $22.01. If you want to know more, read the company's complete 8-K report here.
