PotlatchDeltic Corp., a Spokane-based timberland owner and lumber manufacturer, has agreed to acquire Atlanta-based CatchMark Timber Trust Inc., in an all-stock transaction valued at $919 million.

The transaction value is based on the closing stock prices of PotlatchDeltic and CatchMark on Friday, May 27. The acquisition is expected to result market capitalization value of over $4 billion for the company and a total enterprise value of more than $5 billion, including $557 million in net debt, according to a press release issued by PotlatchDeltic.

Eric J. Cremers, president and chief operating officer of PotlatchDeltic says in the release, “PotlatchDeltic will retain a strong balance sheet and liquidity after the merger is completed, providing a platform for continued growth.”

The transaction, which has been approved by the boards of both companies, is expected to be completed in the second half of the year.

Under the terms of the agreement, CatchMark stockholders will receive 0.23 common shares of PotlatchDeltic stock for each common share of CatchMark they own. That conversion reflects a price per share of $12.88 for each common share of CatchMark and a 55% premium to its common share price as of close of business on May 27, PotlatchDeltic says.

PotlatchDeltic shareholders will own about 86% of the combined company, and CatchMark stockholders will own about 14%.

The transaction adds nearly 350,000 acres of premium timberlands in Alabama, South Carolina, and Georgia to PotlatchDeltic’s portfolio. In all, the company will own close to 2.2 million acres of timberland, including 626,000 acres in Idaho and over 1.5 million acres of timberland across six states in the southern U.S.