A New Timber Giant Emerges as Rayonier and PotlatchDeltic Complete Merger

Rayonier US7549071030

The creation of a premier U.S. timberland real estate investment trust (REIT) is now official. Rayonier Inc. has finalized its merger with PotlatchDeltic Corporation, forming a combined entity that controls a portfolio exceeding four million acres of forestland. The deal, which closed on January 30, 2026, immediately establishes a dominant player in the sector, though investors are now watching to see if the new scale can deliver promised efficiencies in a volatile market.

Structured as a "merger of equals," the transaction significantly expands the asset base. The new company's operations now extend beyond vast timber holdings to include six sawmills and one plywood manufacturing facility. Leadership roles have been clearly defined: Mark D. McHugh will serve as Chief Executive Officer, while Eric J. Cremers, the former head of PotlatchDeltic, assumes the role of Executive Chairman. Governance reflects the merger's balanced nature, with the Board of Directors comprising five members from each legacy company.

For now, the combined company's shares continue trading on the New York Stock Exchange under the Rayonier name and ticker symbol RYN. However, a rebranding is imminent. Management has indicated plans to unveil a new corporate name and a corresponding stock ticker before the end of the first quarter of 2026.

Shareholder Scrutiny and Financial Targets

The path to consolidation was not entirely smooth. While PotlatchDeltic shareholders approved the merger by a substantial margin, a separate advisory vote revealed significant discontent. Over 70% of votes cast were against the proposed executive compensation packages linked to the deal. This shareholder pushback highlights heightened expectations for fiscal discipline from the new leadership team.

Financially, the focus shifts to achieving stated synergy goals. Management is targeting annual cost savings and operational synergies of $40 million. The company enters the market at a time when timber prices have recently fluctuated between $550 and $557 per 1,000 board feet. Rayonier's stock closed the previous trading session at $22.74. Regular trading for the merged entity begins Monday, with the final corporate rebranding to follow later in the quarter.

Key Merger Details:
* Closing Date: January 30, 2026
* Total Timberland Acreage: Over 4 million acres
* Manufacturing Footprint: 6 sawmills, 1 plywood facility
* Annual Synergy Target: $40 million
* Current Ticker: RYN (change planned in Q1 2026)

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