Rayonier, Yulee, Fl., has agreed to acquire all of the outstanding limited partnership units of Pope Resources, Poulsbo, Wa.
Under the terms of the deal, which was unanimously approved by the boards of both companies, gives Pope Resources shareholders the option of swapping their interest for Rayonier shares or $125 in cash per share.
After closing, Rayonier Operating Partnership LP will own all of the assets of Rayonier and Pope Resources and be the operating partnership of Rayonier’s umbrella partnership real estate investment trust.
“We are delighted to be combining two premier pure-play timber organizations using an innovative tax-deferred UPREIT structure,” said David Nunes, president and CEO of Rayonier. “Pope Resources has a strong track record as a best-in-class Pacific Northwest timberland operator and possesses an excellent set of assets in high-quality markets. Our two organizations have very compatible cultures, a complementary set of assets and a shared dedication to value maximization through intensive silvicultural practices and higher-and-better-use real estate operations.”
The purchase increases Rayonier’s holdings in the Pacific Northwest to 504,000 acres, adds 57 million bd. ft. to its sustainable yield, increases its proportion of Douglas-fir inventory, and offers a complementary age-class fit.