Atlanta, Georgia, October 14, 2025
News Summary
Rayonier and PotlatchDeltic have agreed to a merger valued at approximately $8.2 billion, creating the second-largest publicly traded timber company in North America. The merger will combine 4.2 million acres of timberland across 11 states and is expected to close by mid-2026. The new company will have its headquarters in Atlanta, Georgia, and will enhance shareholder value by integrating operations and manufacturing capabilities. Post-merger, Rayonier shareholders will own 54% of the combined entity, indicative of significant consolidation in the timber industry.
Atlanta, Georgia – Rayonier, a timber real estate investment trust based in Florida, and PotlatchDeltic, headquartered in Washington state, have announced a merger agreement valued at approximately $8.2 billion, including net debt. The merger, which is poised to create the second-largest publicly traded timber company in North America, is expected to close in early to mid-2026.
Post-merger, the newly formed entity will become the largest private landowner in Georgia, boasting a timber portfolio of around 4.2 million acres across 11 states, with roughly 75% of its holdings located in the Southern region of the United States. The new corporate headquarters will be situated in Atlanta, Georgia, marking a strategic move for both companies in aligning their operational and management structures.
Under the terms of the merger, PotlatchDeltic shareholders will receive 1.7339 common shares of Rayonier for each share they hold in PotlatchDeltic. After the merger, Rayonier shareholders are anticipated to own approximately 54% of the merged company. The leadership structure post-merger will see Mark McHugh, the current CEO of Rayonier, lead the combined company, while Eric Cremers, CEO of PotlatchDeltic, will serve as the executive chair for a duration of two years.
The merger will also encompass seven wood products manufacturing facilities, integrating both companies’ manufacturing capabilities. This consolidation is expected to enhance shareholder value and create opportunities for strategic and financial benefits, reinforcing the overall competitiveness of the new entity within the timber industry.
In addition, Arkansas, a state where forestry contributes 4.1% to its economy and where around 56% of the state is forestland, is expected to see impacts from the merger. As PotlatchDeltic stands among the top 10 lumber producers in the U.S., the merger is set to bolster its position in the rapidly evolving timber market. The global market for wood and timber products was estimated at $992 billion last year, predominantly driven by products from Asia, further underlining the importance of this industry.
However, the current trade tariffs on softwood timber imports may affect the residential construction industry in the U.S., which is vital for market stability. Both Rayonier and PotlatchDeltic will maintain significant regional offices in their respective original locations following the merger, ensuring continuity of regional management and operations.
Key Details of the Merger
- Valued at approximately $8.2 billion including net debt
- Combines 4.2 million acres of timberland across 11 states, 75% in the South
- Headquarters will be established in Atlanta, Georgia
- Share exchange: 1.7339 common shares of Rayonier for each PotlatchDeltic share
- Rayonier shareholders to hold 54% of the combined company
- Strategic leadership by Mark McHugh and Eric Cremers
- Will operate seven wood products manufacturing facilities
Conclusion
This merger represents a significant consolidation in the timber industry, creating a robust player capable of leveraging strategic resources and enhancing market dynamics in a challenging economic environment.
FAQ Section
What is the value of the Rayonier and PotlatchDeltic merger?
The merger is valued at approximately $8.2 billion, including net debt.
Where will the new corporate headquarters be located?
The new corporate headquarters will be located in Atlanta, Georgia.
What will the combined company’s timber portfolio be?
The merged company will have a timber portfolio of about 4.2 million acres across 11 states, with roughly 75% in the South.
What should PotlatchDeltic shareholders expect?
PotlatchDeltic stockholders will receive 1.7339 common shares of Rayonier for each share they hold.
When is the merger expected to close?
The merger is expected to close in early to mid-2026.
How much of the combined company will Rayonier shareholders own?
Rayonier shareholders are expected to hold approximately 54% of the combined company after the merger.
Key Features of the Merger
| Feature | Details |
|---|---|
| Merger Value | $8.2 billion |
| New Headquarters | Atlanta, Georgia |
| Timber Portfolio | 4.2 million acres |
| Share Exchange Ratio | 1.7339 common shares of Rayonier for each PotlatchDeltic share |
| Rayonier Ownership | 54% after merger |
| Leadership | Mark McHugh as CEO, Eric Cremers as Executive Chair for 2 years |
| Manufacturing Facilities | Seven wood products manufacturing facilities |
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HERE Resources
Additional Resources
- AJC: Timber Merger Brings HQ to Atlanta
- Reuters: Rayonier & PotlatchDeltic Form Timber Products Giant
- GlobeSt: PotlatchDeltic and Rayonier Merge
- Jax Daily Record: Rayonier, PotlatchDeltic Announce Merger
- Bloomberg: Major US Lumber Manufacturers Merger
- Wikipedia: Timber Industry
- Google Search: Rayonier PotlatchDeltic merger
- Encyclopedia Britannica: Timber
- Google News: Rayonier PotlatchDeltic merger
- Google Scholar: Rayonier PotlatchDeltic merger
Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
