Rayonier, PotlatchDeltic confirm $8.2B timber products merger deal

[Stack of lumber and planks in a lumber warehouse outdoors]
Melena-Nsk/iStock via Getty Images

PotlatchDeltic (NASDAQ:PCH [https://seekingalpha.com/symbol/PCH]) +4.6% and Rayonier (NYSE:RYN [https://seekingalpha.com/symbol/RYN]) -1.1% pre-market Tuesday after confirming they will merge in an all-stock deal valued at ~$8.2 billion including debt, creating one of North America's largest publicly-traded timber and wood products companies.

Under the deal terms, PotlatchDeltic (NASDAQ:PCH [https://seekingalpha.com/symbol/PCH]) shareholders will receive 1.7339 common shares of Rayonier (NYSE:RYN [https://seekingalpha.com/symbol/RYN]) for each common share of PotlatchDeltic, representing an implied price of $44.11/share, a premium of 8.25% to PotlatchDeltic's closing stock price on October 10.

Upon closing of the transaction, Rayonier (RYN [https://seekingalpha.com/symbol/RYN]) shareholders will own ~54% and PotlatchDeltic (PCH [https://seekingalpha.com/symbol/PCH]) shareholders will own ~46% of the combined company, which will operate under a new name to be announced prior to closing.

The combined company will have a diverse timberland portfolio comprising ~4.2 million acres, including 3.2 million acres in the U.S. South and 931,000 acres in the U.S. Northwest, and will operate seven wood products manufacturing facilities, including six lumber mills with total capacity of 1.2 billion board feet and one industrial plywood mill.

Rayonier (RYN [https://seekingalpha.com/symbol/RYN]) CEO Mark McHugh will lead the new company, while PotlatchDeltic (PCH [https://seekingalpha.com/symbol/PCH]) CEO Eric Cremers will serve as executive chair for two years.

MORE ON RAYONIER AND POTLATCHDELTIC

* Rayonier: There's Significant Value In This Timberland REIT [https://seekingalpha.com/article/4825829-rayonier-theres-significant-value-in-this-timberland-reit]
* Rayonier: This Undervalued Timber REIT Is Planting Seeds For Future Gains [https://seekingalpha.com/article/4805858-rayonier-this-undervalued-timber-reit-is-planting-seeds-for-future-gains]
* PotlatchDeltic: U.S. Timberland REIT Waiting For The Next Housing Upcycle [https://seekingalpha.com/article/4816259-potlatchdeltic-us-timberland-reit-waiting-for-the-next-housing-upcycle]