Rayonier, PotlatchDeltic to form timber products giant in $8.2 billion merger

By Sabrina Valle and Katha Kalia

U.S. land managers Rayonier RYN and PotlatchDeltic PCH said they would merge on Tuesday in an all-stock deal worth about $8.2 billion, including debt, forming the country's second-largest publicly traded timber and wood products company.

The merger was announced by the companies on the same day the Trump administration began enforcing 10% tariffs on imported timber and lumber. Rayonier stock fell 5% and PotlatchDeltic was less than 1% lower in midday trading after news of the deal.

Years of elevated mortgage rates and weak housing demand have pressured lumber and timberland prices and are contributing to concentration in the construction sector.

Rayonier CEO Mark McHugh, who will lead the new firm, said tariffs are beneficial to U.S. producers and should strengthen internal demand for its products. The new company, whose name is yet to be disclosed, will be second behind Weyerhaeuser WY.

Both companies are timberland-focused real estate investment trusts that own and manage millions of acres of forest land, earning revenue from harvesting trees, selling wood products, and leasing or selling land for development and other uses.

PotlatchDeltic CEO Eric Cremers, who will serve as executive chair of the combined company for two years, said the housing market is poised to improve as inflation eases and interest rates decline, which should help make new construction more affordable and slowly raise demand for their products.

"There are better times ahead for the housing market,” he told Reuters in an interview, noting that both single-family and multifamily projects could benefit.

Rayonier shareholders will hold about 54% and PotlatchDeltic investors 46% of the combined company, which will own about 4.2 million acres of timberland across 11 U.S. states and operate seven wood manufacturing plants, giving greater scale and reach.

Executives of both companies will join the new entity.

Most of the merged firm's acreage will be in the U.S. South, a region with a large softwood capacity.

RBC Capital Markets analyst Matthew McKellar said the deal was "moderately positive," citing its scale, diversification and synergy potential, but noted Rayonier's limited experience in wood products manufacturing.

PotlatchDeltic shareholders will get 1.7339 Rayonier shares per share, valuing PotlatchDeltic at $44.11 each.

This values PotlatchDeltic at $3.41 billion, according to a Reuters calculation.

The per-share value, represents a premium of 8.25% to PotlatchDeltic's closing stock price on October 10, the last business day prior to execution of the deal, the companies said.

The deal is expected to close by mid-2026.

The headquarters will be in Atlanta, with regional offices in Spokane, Washington, and Wildlight, Florida.