Rayonier, PotlatchDeltic to Merge in $7.1B Timber Deal

A New Timber Giant

Rayonier and PotlatchDeltic are merging in an all-stock deal that will create a forestry REIT worth $7.1B, or $8.2B with debt, per WSJ. The merger makes the company the second-largest private timberland owner in the country.

PotlatchDeltic shareholders will receive 1.7339 Rayonier shares per PCH share. Post-merger, Rayonier shareholders will own 54% of the combined firm. Rayonier CEO Mark McHugh will lead the new company, with a 10-member board split evenly between both firms.

Land and Strategy

The combined company will manage 4.2M acres of US timberland:

• Northwest holdings: Nearly 1M acres, where private timber is in high demand due to declining federal supply.
• Southern assets: A region with cheaper pine supply but better profitability, especially for lumber mills.

PotlatchDeltic brings mills in four states—Arkansas, Idaho, Michigan, and Minnesota—adding operational scale.

Why It Matters

As real estate investment trusts (REITs), both companies pass most of their earnings to shareholders tax-efficiently. Beyond timber, both are tapping into new revenue from solar developers leasing large parcels of land—some deals earning 10x more than tree farming.

What’s Behind the Deal

Lumber prices have swung sharply in 2025, pressured by weak housing demand but lifted by tariffs and sawmill cutbacks. A new 10% tariff on softwood imports, on top of a 35% duty on Canadian lumber, is boosting domestic players.

With a larger footprint, diversified income streams, and a favorable trade environment, the new Rayonier-PotlatchDeltic entity is positioning itself for long-term growth.