Rayonier Inc. has announced the sale of its 77% interest in its New Zealand joint venture to The Rohatyn Group (TRG) for $710 million, subject to adjustments.
This strategic move, announced on March 10, 2025, marks Rayonier's exit from New Zealand and will allow the company to focus exclusively on its U.S. operations.
The sale price implies an enterprise value of $922 million for the New Zealand joint venture, which manages approximately 287,000 productive acres of timberlands. The transaction is expected to close in 2025, pending regulatory approvals and other closing conditions.
Rayonier's decision to sell its New Zealand interest aligns with several strategic objectives:
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Concentration on U.S. Markets: The exit from New Zealand will allow Rayonier to focus its capital on core U.S. markets with favorable long-term growth prospects.
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Portfolio Simplification: The sale will streamline Rayonier's portfolio, financial reporting, and overall value proposition.
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Leverage Reduction: Proceeds from the transaction will be used to further reduce leverage and potentially return capital to shareholders.
Rayonier expects the transaction to be modestly accretive to pro forma Cash Available for Distribution (CAD) per share. The company's pro forma Net Debt to pro forma Adjusted EBITDA is expected to decrease to approximately 0.3x as a result of the transaction.
Assuming the transaction closes, Rayonier anticipates a special dividend for 2025 of $1.00 to $1.40 per share, to be paid in a combination of cash and shares.
TRG, an investment firm specializing in emerging markets and real assets, views this acquisition as an opportunity to leverage its expertise in managing global forestry assets. The firm has been investing in the New Zealand forestry sector since 1998 and plans to build on Rayonier's success in the region.
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2024, Rayonier owned or leased under long-term agreements approximately 2.5 million acres of timberlands located in the U.S. South (1.75 million acres), U.S. Pacific Northwest (308,000 acres) and New Zealand (412,000 total acres / 287,000 productive acres).
