PotlatchDeltic Corp (NASDAQ:PCH) shares jumped 5.6% in premarket trading Tuesday after the company revealed a definitive all-stock merger agreement with Rayonier (NYSE:RYN), a deal that will create one of the largest timber companies in North America.
The merger of equals will establish the second-biggest publicly listed timber and wood products company in the region, with a combined pro forma equity market capitalization of $7.1 billion and a total enterprise value of $8.2 billion, based on closing prices as of October 10.
Under the agreement, PotlatchDeltic shareholders will receive 1.7339 Rayonier common shares for each PotlatchDeltic share, equating to an implied price of $44.11 per share — an 8.25% premium to the company’s October 10 closing price.
The new entity, which will be renamed prior to closing, will control roughly 4.2 million acres of timberland spanning 11 U.S. states, with over 75% of that land located in the U.S. South. It will also operate seven wood products manufacturing facilities, including six lumber mills with a combined capacity of 1.2 billion board feet annually.
“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,” said Eric Cremers, President and CEO of PotlatchDeltic. Cremers will serve as Executive Chair of the new company’s board for 24 months following the merger.
The companies anticipate achieving approximately $40 million in annual synergies within two years of closing, driven by both corporate and operational cost efficiencies. The transaction is expected to close in late Q1 or early Q2 of 2026, pending regulatory approvals and shareholder votes from both sides.
PotlatchDeltic Corp stock price
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