Rayonier Inc Merges with PotlatchDeltic, Creating $8.2B Land Resources REIT

By Hao Liu • Tuesday, October 14 12:07 • Permanent Link

Rayonier (NYSE: RYN) and PotlatchDeltic (NASDAQ: PCH) have announced their merger, creating a leading land resources REIT with significant financial and operational benefits. The combined company is expected to have a pro forma equity market capitalization of $7.1 billion and a total enterprise value of $8.2 billion, including $1.1 billion of net debt.

Upon completion of the transaction, the combined company will become the second-largest publicly traded timber and wood products company in North America. The exchange ratio implies an implied price of $44.11 per PotlatchDeltic share, representing a premium of 8.25% to its closing stock price on October 10, 2025.

The combined company will have a diversified timberland portfolio comprising approximately 4.2 million acres, including 3.2 million acres in the US South and 931,000 acres in the US Northwest. It will also operate seven wood products manufacturing facilities, including six lumber mills with a total capacity of 1.2 billion board feet and one industrial plywood mill.

The merger is expected to generate approximately $40 million of annual synergies, driven by a combination of corporate and operational overhead cost savings. The combined company is expected to have a strong pro-forma balance sheet with estimated net debt to LTM adjusted EBITDA of roughly 2.5x and net debt to enterprise value of less than 15%.

The transaction is expected to close in late first quarter or early second quarter of 2026, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the approval of both Rayonier’s and PotlatchDeltic’s shareholders.

Rayonier also announced a one-time special dividend of $1.40 per share, consisting of a combination of cash and Rayonier common shares, payable on December 12, 2025, to Rayonier shareholders of record on October 24, 2025. The cash component of the special dividend will not exceed 25% in the aggregate, with the balance payable in Rayonier common shares.

The executive leadership team of the combined company will comprise roughly equal representation of top talent from both Rayonier and PotlatchDeltic, with the corporate headquarters of the combined company located in Atlanta, Georgia, and significant regional offices maintained in Spokane, WA, and Wildlight, FL. Today the company's shares have moved 1.81% to a price of $25.90. If you want to know more, read the company's complete 8-K report here.

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