PotlatchDeltic, Rayonier To Merge 

Rayonier, bringing its timberland real estate investment trust (REIT) to the table, and PotlatchDeltic, with its REIT and multiple wood products mills, have entered into a merger agreement. The new company is expected to have an equity market capitalization of $7.1 billion and a total enterprise value of $8.2 billion, including $1.1 billion of net debt, and will become the second largest publicly traded timber and wood products company in North America.

Upon closing of the transaction, Rayonier shareholders will own 54% and PotlatchDeltic shareholders will own 46% of the combined company, according to the participants.

The combined company will operate under a new name, to be announced prior to closing, which is expected in late first quarter or early second quarter of 2026.

The combined company will have a diverse timberland portfolio comprising 4.2 million acres, including 3.2 million acres in the U.S. South and 931,000 acres in the U.S. Northwest. The company will operate seven wood products manufacturing facilities, including six lumber mills with total capacity of 1.2 billion BF and one industrial plywood mill. The transaction will also combine two complementary real estate businesses, including a significant long-term upside from value-add real estate development projects in Arkansas, Florida and Georgia. The combination is further expected to provide opportunities and an enhanced platform to drive growth in land-based and natural climate solutions.

Mark McHugh, President and CEO of Rayonier, comments, “Rayonier and PotlatchDeltic share a commitment to sustainability and a legacy of excellence in delivering land resources to their highest and best use. We are confident that the merger will generate meaningful value creation.”

Eric Cremers, President and CEO of PotlatchDeltic, adds, “This merger is a watershed moment for both companies. Our complementary assets and shared vision will unlock opportunities to create significant strategic and financial benefits beyond what could be achieved by either company independently.”

The executive leadership team of the combined company will comprise roughly equal representation from Rayonier and PotlatchDeltic. McHugh will serve as President and CEO. Wayne Wasechek, currently CFO of PotlatchDeltic, will serve as CFO of the combined company; Rhett Rogers, currently SVP, Portfolio Management of Rayonier, will serve as EVP, Land Resources; and Ashlee Cribb, currently VP, Wood Products of PotlatchDeltic, will serve as EVP, Wood Products.

Cremers will be the Executive Chair of the Board of Directors of the combined company for 24 months after closing.

The corporate headquarters of the combined company will be located in Atlanta, with significant regional offices in Spokane, Wash. and Wildlight, Fla.

Prior to the merger announcements, Rayonier and its REIT possessed assets in some of the most productive softwood timber growing regions in the U.S., and owned or leased under long-term agreements 2 million acres of timberlands in the U.S. South (1.74 million acres) and Pacific Northwest (307,000 acres).

PotlatchDeltic, also a leading REIT, owned 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina; and through its REIT subsidiary, operated six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.