Rayonier-PotlatchDeltic Merger to Create Second-Largest U.S. Timber Company

The deal would result in a timber and wood products giant controlling 4.2 million acres across the country.

Much of the combined company’s holdings, spread across 11 states and including seven wood manufacturing plants, would be located in the American South with its large softwood capacity. It would have an enterprise value of about $8.2 billion – including $1.1 billion of debt, and would result in the second largest publicly traded company in the field in North America. 

Mark McHugh, president and CEO of Rayonier, who will become president of the new entity after its expected closing in mid-2026, said, “We are excited to announce this strategic merger of equals, combining two exceptional land resources companies to deliver enhanced value for our shareholders and other stakeholders. Rayonier and PotlatchDeltic share a commitment to sustainability and a legacy of excellence in delivering land resources to their highest and best use.”

Eric Cremers, president and CEO of PotlatchDeltic, said, “This merger is a watershed moment for both companies. Our complementary assets and shared vision will unlock opportunities to create significant strategic and financial benefits beyond what could be achieved by either company independently. We look forward to working together to ensure a seamless transition and to capitalize on exciting opportunities for optimization and growth.” Cremers will stay as executive chairman of the new company for two years. 

The combined company, which will be headquartered in Atlanta with regional offices in Spokane, Washington and Wildlight, Florida, is expected to take advantage of the economies of scale that come with its new size, positioning it to prosper when the housing market eventually strengthens and the need for lumber returns to a pre-high interest rate and tariff-related factors marketplace.

In a Reuters report on the merger, RBC Capital Markets analyst Matthew McKellar said the deal was “moderately positive,” citing its scale, diversification and synergy potential, but noted Rayonier’s limited experience in wood products manufacturing.

Rayonier, it was noted, provides sustainable forest management, land management, timber products and real estate services.

Even after the merger the new company will still trail Weyerhaeuser, the industry leader which is the country’s largest private landowner with more than 10 million acres and a market value of over $17 billion.

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