Rayonier has officially closed the sale of its 77% stake in its New Zealand forestry business to The Rohatyn Group (TRG), a global asset manager specializing in emerging markets and real assets.
The $710 million transaction is part of Rayonier’s broader strategy to streamline its operations and strengthen its capital structure.
Net proceeds from the deal are expected to total approximately $699 million after accounting for net debt, working capital, transaction fees, and other closing adjustments. At least half of the proceeds will be directed toward reducing leverage and rewarding shareholders through special dividends and stock buybacks. Rayonier anticipates issuing a 2025 special dividend ranging between $1.00 and $1.40 per share, to be paid in a mix of cash and shares.
“With this transaction, we have now completed roughly $1.45 billion in asset dispositions since launching our capital realignment plan in late 2023—well above our original $1 billion target,” said Rayonier President and CEO Mark McHugh. “These steps have enhanced our financial flexibility and positioned us for long-term value creation.”
As of the end of Q2 2025, the company had repurchased approximately 1.5 million shares for $35 million and still has $262 million available under its current repurchase program.
Rayonier’s New Zealand operations had already been reclassified as discontinued in its financial reporting, and their contributions were excluded from the company’s latest financial outlook. The sold assets include 412,000 acres of timberland in the region.
McHugh also acknowledged the New Zealand team’s performance, stating, “They’ve done an outstanding job managing these highly productive assets. We are confident that TRG, with its strong track record in forestry asset management, will continue that stewardship.”
Founded in 2002, TRG operates across 16 countries and manages diversified portfolios of timberland and farmland through its Forestry & Agriculture division, formerly GMO Renewable Resources.
With the sale complete, Rayonier now focuses exclusively on its 2.06 million acres of U.S.-based timberlands across the South and Pacific Northwest.
