Rayonier and PotlatchDeltic Announce $7.1 B Merger of Equals
Rayonier Inc. and PotlatchDeltic Corp. have announced an all-stock merger of equals that will create one of North America’s largest publicly traded timber and wood-products companies. The combined entity will own approximately 4.2 million acres of timberland, operate seven manufacturing facilities, and have a pro forma equity market capitalization of $7.1 billion.
Under the agreement, PotlatchDeltic shareholders will receive 1.7339 shares of Rayonier for each PotlatchDeltic share, an 8.25 percent premium over the company’s October 10 closing price. When the transaction closes—expected in early 2026—Rayonier shareholders will own 54 percent of the new company and PotlatchDeltic shareholders 46 percent. A new corporate name will be announced before closing.
A Combined Timber and Real Estate Powerhouse
The merger joins two major timberland owners with complementary assets across 11 U.S. states. About three-quarters of the combined 4.2 million acres will be in the U.S. South, with the balance in the Pacific Northwest. The company will also operate six lumber mills with annual capacity of 1.2 billion board feet and an industrial plywood facility producing 150 million square feet per year.
Beyond forestry, both companies bring established real-estate platforms, with development projects in Florida, Georgia, and Arkansas and long-term opportunities in higher-and-better-use (HBU) land development.
Growth Through Scale and Efficiency
Rayonier and PotlatchDeltic expect $40 million in annual synergies within 24 months, driven by corporate efficiencies and operational savings. The combined balance sheet will target net debt of 2.5 times EBITDA, maintaining investment-grade status.
The enlarged company will pursue growth in natural climate solutions such as carbon capture, solar, and conservation projects—an area both firms have been developing independently.
Leadership and Next Steps
Rayonier CEO Mark McHugh will lead the combined company, while PotlatchDeltic CEO Eric Cremers will serve as executive chair for the first two years. The 10-member board will include five directors from each firm. Headquarters will be based in Atlanta, Georgia, with regional offices in Spokane, Washington, and Wildlight, Florida.
The transaction, subject to shareholder and regulatory approvals, is expected to close by mid-2026.
Rayonier Inc. is a timberland real estate investment trust owning or leasing about 2 million acres in the U.S. South and Pacific Northwest.
PotlatchDeltic Corp. is a leading REIT managing 2.1 million acres of timberlands and operating lumber and plywood mills, as well as residential and commercial real-estate developments across the southern U.S. and Idaho.
