SPOKANE, WA–Local timberland company Potlatch Corp. is buying Deltic Timber Corp. in an all-stock transaction to create a timberland REIT that will have a total enterprise value of $4 billion and a pro forma equity market cap of $3.3 billion. The combined company will be called PotlatchDeltic Corp. and it will trade on Nasdaq under the ticker PCH.
Under the terms of the agreement, Deltic stockholders will receive 1.80 common shares of Potlatch stock for each common share of Deltic that they own and will own 65% of the combined company when the deal is closed. It will also convert to a REIT structure at that point.
The combined company will have a timberland portfolio of two million acres, with 1.1 million acres in the US South, 600,000 acres in Idaho and 150,000 acres in Minnesota. The company will also operate eight wood products manufacturing facilities, including six lumber manufacturing facilities, one medium density fiberboard facility and one industrial plywood mill.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
