Rayonier announced the acquisition of Pope Resources/Olympic Resource Management for the consideration of equity and cash valued at $554 million. Through this transaction Rayonier will add 125k acres to its fee timberland base in the Pacific Northwest. The additional timberland increases Rayonier’s sustainable yield in the Pacific Northwest by 57 mmbf and increases the Douglas-fir proportion of merchantable inventory from 60% to 68%. It will also add 17k acres as “look-through” investments from its 12% stake in three timberland funds comprising of 141k acres managed by Pope’s subsidiary Olympic Resource Management. The fund management business also includes approximately $4 million in annual management fees. Five real estate development projects in the Seattle area are also included in the transaction.
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