Spokane-based PotlatchDeltic Corp. and Wildlight, Florida-based Rayonier Inc. have entered into an agreement to merge in an all-stock deal, the companies announced today.

The combined company will become the second-largest publicly traded timber and wood products company in North America upon completion of the transaction, according to a press release.

The transaction is expected to close in the first half of next year.

Operating under a new name that has not yet been announced, the combined company will be headquartered in Atlanta, but will maintain significant regional offices in Spokane and Wildlight.

Eric Cremers, president and CEO of PotlatchDeltic, will become the executive chair of the board of directors for the combined company for two years after closing of the deal.

Mark McHugh, president and CEO of Rayonier, will serve as president and CEO of the combined company.

Factoring in recent stock prices and net debt for the two companies, the combined company is projected to have a total enterprise value of $8.2 billion, according to the release.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of each company, PotlatchDeltic shareholders will receive 1.7339 common shares of Rayonier for each common stock of PotlatchDeltic. The exchange ratio represents an implied price of $44.11 per PotlatchDeltic share, and a premium of 8.25% to PotlatchDeltic’s closing stock price on Oct. 10, 2025.

Upon closing, Rayonier shareholders will own approximately 54% and PotlatchDeltic shareholders will own approximately 46% of the combined company, the companies say.

The combined company will have a timberland portfolio of about 4.2 million acres across 11 states, including 3.2 million acres in the South and 931,000 acres in the Northwest. The company also will operate seven wood products manufacturing facilities, including six lumber mills with total capacity of 1.2 billion board feet, and one industrial plywood mill.

“This merger is a watershed moment for both companies,” Cremers says in the release. “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.”