Rayonier and PotlatchDeltic Agree to Merge in All-Stock Deal

On Tuesday, Rayonier and PotlatchDeltic said they entered a definitive agreement to combine in an all-stock merger of equals, creating a leading domestic land resources owner and top-tier lumber manufacturer. The combined company will become the second largest publicly traded timber and wood products company in North America.

Based on October 10 closing prices, the combined company is expected to have a pro forma equity market capitalization of $7.1 billion and an enterprise value of $8.2 billion, including $1.1 billion of net debt.

Under the terms, PotlatchDeltic shareholders will receive 1.7339 Rayonier shares for each PotlatchDeltic share, implying $44.11 per share and an 8.25% premium. Upon closing, Rayonier shareholders will own about 54% and PotlatchDeltic shareholders about 46% of the combined company, which will operate under a new name to be announced before closing.

The combined portfolio will include approximately 4.2 million acres of timberland—3.2 million in the US South and 931,000 in the US Northwest—and seven wood products manufacturing facilities, including six lumber mills (1.2 billion board feet of capacity) and one industrial plywood mill.

The transaction is expected to close in late 2026Q1 or early 2026Q2. The transaction is subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals and the approval of shareholders.

In remarks accompanying the announcement, Rayonier President and Chief Executive Officer Mark McHugh said:

“We are excited to announce this strategic merger of equals, combining two exceptional land resources companies to deliver enhanced value for our shareholders and other stakeholders. Rayonier and PotlatchDeltic share a commitment to sustainability and a legacy of excellence in delivering land resources to their highest and best use. We look forward to completing the transaction, and we are confident that the merger will generate meaningful value creation.”

PotlatchDeltic President and Chief Executive Officer Eric Cremers added:

“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. We look forward to working together to ensure a seamless transition and to capitalize on exciting opportunities for optimization and growth.”