PotlatchDeltic, Rayonier To Merge In All-Stock Deal To Form US Land And Lumber Giant

The companies said that Rayonier shareholders will own approximately 54% and PotlatchDeltic shareholders will own approximately 46% of the combined company.

PotlatchDeltic (PCH) shares rose 5% in early trading on Tuesday after the company, along with Rayonier (RYN), announced that they have entered into a definitive agreement to combine in an all-stock merger, creating a domestic land resources owner and lumber manufacturer.

The companies said that based on the closing stock prices of Rayonier and PotlatchDeltic on October 10, the last business day before the execution of the agreement, the combined company is expected to have a pro forma equity market capitalization of $7.1 billion, with the total enterprise value at $8.2 billion, including $1.1 billion of net debt. The firms noted that upon completion of the transaction, the combined company will become the second-largest publicly traded timber and wood products company in North America.

Retail sentiment on PotlatchDeltic remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The companies said that under the terms of the agreement, PotlatchDeltic shareholders will receive 1.7339 common shares of Rayonier for each share of common stock of PotlatchDeltic. The exchange ratio represents an implied price of $44.11 per PotlatchDeltic share, and a premium of 8.25% to PotlatchDeltic’s closing stock price on October 10.

Rayonier shareholders will own approximately 54% and PotlatchDeltic shareholders will own approximately 46% of the combined company. The combined company will operate under a new name, to be announced before closing, the firms said.

Retail sentiment on Rayonier remained unchanged in the ‘neutral’ territory compared to a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits. Shares of the company were down 1% in morning trade.

Shares of Rayonier have declined nearly 2% this year, and PotlatchDeltic stock has gained about 10% year-to-date.

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