In a significant corporate development, Rayonier Inc. (NYSE: RYN) has entered into a definitive merger agreement with PotlatchDeltic Corporation (NASDAQ: PCH) to create a combined entity through a merger of equals. The agreement, finalized on October 13, 2025, outlines that PotlatchDeltic will merge with Redwood Merger Sub, LLC, a wholly owned subsidiary of Rayonier, with the subsidiary surviving the merger.
The financial terms of the deal specify that each share of PotlatchDeltic common stock will convert into the right to receive 1.8185 shares of Rayonier common stock and $0.61 in cash, following an adjustment for a special dividend of $1.40 per share declared by Rayonier. This merger consideration is fixed and subject to no adjustments based on stock price fluctuations prior to the merger's completion. Based on the last trading prices, the implied value of the transaction is estimated at approximately $1.4 billion.
Strategically, this merger is poised to enhance the competitive positioning and operational efficiency of both companies in the forestry and land management sectors. By combining resources and expertise, Rayonier and PotlatchDeltic aim to leverage synergies that could lead to improved economies of scale and greater innovation in sustainable forestry practices.
Shareholders of both companies will need to approve the merger. A special meeting of Rayonier shareholders is scheduled for [insert date], 2026, at the company’s headquarters in Wildlight, Florida, while PotlatchDeltic stockholders will convene virtually on [insert date], 2026. Approval of the merger agreement is contingent upon a majority vote from each company’s shareholders.
The transaction is expected to close in early 2026, pending the necessary regulatory approvals and shareholder votes. Both companies have expressed confidence that the merger will create significant value for their respective shareholders, employees, and the broader market.
From a regulatory perspective, the merger will be subject to standard antitrust reviews and compliance with SEC regulations, ensuring that the merger does not create unfair market conditions. As the market awaits further developments, analysts are monitoring how this merger will reshape the landscape of the forestry industry, potentially impacting stock prices and investor sentiment in both companies.
In conclusion, the Rayonier and PotlatchDeltic merger represents a pivotal shift in the forestry sector, aiming to set new standards for sustainability and operational performance, while presenting exciting opportunities for investors and stakeholders alike.