Rayonier (NYSE: RYN) and PotlatchDeltic (NASDAQ: PCH) have announced a definitive agreement to merge in an all-stock merger of equals, creating a leading domestic land resources owner and top-tier lumber manufacturer. Based on the closing stock prices of both companies on October 10, 2025, 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.
The transaction, expected to close in late first quarter or early second quarter of 2026, will result in Rayonier shareholders owning approximately 54% and PotlatchDeltic shareholders owning approximately 46% of the combined company. The combined company will operate under a new name, to be announced prior to closing.
The combined company will have a productive and diverse timberland portfolio comprising approximately 4.2 million acres, including 3.2 million acres in the U.S. South and 931,000 acres in the U.S. 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 offer significant strategic and financial opportunities, including approximately $40 million of annual synergies and a strong pro forma balance sheet with estimated net debt to LTM adjusted EBITDA of roughly 2.5x.
Rayonier has declared 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 executive leadership team of the combined company will comprise roughly equal representation of top talent from both Rayonier and PotlatchDeltic, with Mark McHugh, President and CEO of Rayonier, continuing to serve as President and CEO as well as a member of the board of directors of the combined company. Eric Cremers, President and CEO of PotlatchDeltic, will be the executive chair of the board of directors of the combined company for 24 months after closing.
The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the approval of both Rayonier’s shareholders and PotlatchDeltic’s shareholders. The market has reacted to these announcements by moving the company's shares 1.81% to a price of $25.90. For more information, read the company's full 8-K submission here.
