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Investing.com -- PotlatchDeltic Corp (NASDAQ:PCH) stock surged 5.6% in premarket trading Tuesday after announcing a definitive agreement to merge with Rayonier (NYSE:RYN) in an all-stock transaction that will create one of North America’s largest timber companies.
The merger of equals will form the second-largest publicly traded timber and wood products company in North America, with a combined pro forma equity market capitalization of $7.1 billion and total enterprise value of $8.2 billion, based on closing prices as of October 10.
Under the terms of the agreement, PotlatchDeltic shareholders will receive 1.7339 common shares of Rayonier for each share of PotlatchDeltic stock, representing an implied price of $44.11 per share and an 8.25% premium to PotlatchDeltic’s closing price on October 10.
The combined entity will operate under a new name to be announced before closing and will control approximately 4.2 million acres of timberland across 11 states, with over three-quarters located in the U.S. South. The company will also operate seven wood products manufacturing facilities, including six lumber mills with a total capacity of 1.2 billion board feet.
"This merger is a watershed moment for both companies. Our complementary assets and shared vision will unlock opportunities to create significant strategic and financial benefits beyond what could be achieved by either company independently," said Eric Cremers, President and CEO of PotlatchDeltic, who will become Executive Chair of the combined company’s board for 24 months after closing.
The companies expect to realize approximately $40 million in annual synergies within 24 months of closing through corporate and operational overhead cost savings. The transaction is anticipated to close in late first quarter or early second quarter of 2026, subject to regulatory approvals and shareholder votes from both companies.
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