Shareholders Greenlight Rayonier and PotlatchDeltic Merger, Solidifying Arkansas Timber Footprint

By the Arkansas Delta Informer Staff

Jan. 29, 2026 — In a move that reshapes the forestry landscape of the U.S. South, shareholders of Rayonier Inc. and PotlatchDeltic officially approved the two timberland real estate giants’ $8.2 billion merger. The so-called “merger of equals,” expected to close after market hours on Jan.30, creates a timber powerhouse with deep roots and massive acreage across Arkansas.

The merger is a “watershed moment” for the industry, according to company leadership, bringing together two of the largest timberland owners in the Natural State.

A Massive Southern Footprint

The combined entity will manage approximately 4.2 million acres of timberland nationwide. Crucially for the Arkansas Delta and surrounding regions, nearly 3.2 million of those acres are located in the U.S. South.

Before this merger, PotlatchDeltic was already a dominant force in Arkansas, owning approximately 935,000 acres in the state. The company’s presence is vertically integrated, with timber harvested from Arkansas lands feeding its sawmills in Warren, Waldo, and Ola.

PotlatchDeltic is also the owner of Chenal Properties Inc., the property developer of some of the most exclusive and sought-after master-planned communities in Central Arkansas, including Chenal Valley and Wildwood Place in Little Rock and Red Oak Ridge in Hot Springs. They are also opening their newest subdivision in west Little Rock, Fletcher Valley, in fall 2020. 

Transaction Details

Under the terms approved by stockholders:

• Exchange Ratio: PotlatchDeltic shares will be converted into 1.8185 Rayonier common shares plus $0.61 in cash.
• Ownership: Rayonier shareholders will own roughly 54% of the new company, with former PotlatchDeltic stockholders holding 46%.
• Branding: The company will initially operate under the Rayonier name and the ticker RYN, with a new name and symbol expected later in the first quarter of 2026.
• Headquarters: The combined company will be headquartered in Atlanta, Georgia, though it plans to maintain significant regional offices in Spokane, Wash., and Wildlight, Fla.

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The Road from El Dorado

The merger marks the end of an era for the “Deltic” name, which originated in El Dorado, Arkansas. In 1996, Deltic Timber Corp. was spun off from Murphy Oil Corp., eventually becoming a staple of the South Arkansas economy.

In 2018, Spokane-based Potlatch Corp. acquired Deltic in a $3.3 billion deal, forming PotlatchDeltic. That move was spurred in part by investor pressure from firms like Memphis-based Southeastern Asset Management, which pushed for “strategic alternatives” to unlock the value of Deltic’s massive Arkansas holdings.

In 2019, PotlatchDeltic sold the El Dorado Medium Density Fiberboard (MDF) business to Roseburg Forest Products for a purchase price of approximately $92 million.The MDF mill had been part of the assets acquired in the merger. in 2022, PotlatchDeltic announced a $131 million expansion and modernization project at its Waldo, sawmill, which is expected to reach 275 million board feet per year capacity at full operation. 

Looking Ahead: Synergies and Strategy

The new Rayonier-led entity expects to realize roughly $40 million in annual synergies within the next two years. By operating as a Real Estate Investment Trust (REIT), the company will continue to pass on tax-deferred profits to its shareholders while managing its vast “working forests” for both timber production and emerging climate solutions, such as carbon capture and solar energy.

Mark McHugh, current CEO of Rayonier, will lead the combined company, while PotlatchDeltic CEO Eric Cremers will serve as Executive Chair for the next 24 months.