US Lumber Giants Agree to Combine in $7.1 Billion Deal

Core Viewpoint - Rayonier Inc. has agreed to acquire PotlatchDeltic Corp. in an all-stock transaction valued at approximately $3.4 billion, creating one of the largest publicly traded timber and wood products companies in North America [1] Group 1: Deal Structure and Financial Implications - PotlatchDeltic shareholders will receive 1.7339 shares of Rayonier for each share they hold, representing a 7.8% premium to PotlatchDeltic's closing price [2] - Rayonier shareholders will own 54% of the new entity, with Mark McHugh continuing as president and CEO, while Eric Cremers will serve as executive chairman for 24 months post-deal closure [6] Group 2: Market Context and Industry Conditions - The acquisition announcement coincides with the implementation of President Trump's tariffs on imported lumber and wood products, aimed at bolstering domestic manufacturing [3] - Lumber futures have recently hit a seven-month low due to high interest rates and increased costs, leading to reduced demand for new homes, with some suppliers describing current market conditions as the worst ever [4] - Eric Cremers noted that the tariffs, along with lower interest rates and an improved housing market, are expected to help raise prices in the future [5] Group 3: Corporate Structure and Location - The new company will have its corporate headquarters in Atlanta, Georgia, with significant regional offices in Spokane, Washington, and Wildlight, Florida [7]