Oct. 14 at 2:18 PM
PotlatchDeltic shares rose in premarket trading Tuesday after the company announced a definitive all-stock merger with Rayonier to create one of North America’s largest timber companies.
The merger of equals will form the second-largest publicly traded timber and wood products firm in North America, with a combined market cap of
$7.1 billion and enterprise value of
$8.X.2 billion, based on October 10 closing prices.
Under the terms, PotlatchDeltic shareholders will receive 1.7339 Rayonier shares for each PotlatchDeltic share, implying a value of
$44.11 and an 8.25% premium to its October 10 close.
The combined company—operating under a new name to be announced before closing—will own about 4.2 million acres of timberlands across 11 states, mostly in the U.S. South, and run seven wood products facilities, including six sawmills with 1.2 billion board feet of capacity.
$PCH $RYN