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Potlatch Corp., Spokane, Wa., and Deltic Timber Corp., El Dorado, Ar., have entered into a definitive agreement to combine in an all-stock transaction and create a leading domestic timberland owner and top-tier lumber manufacturer.
The combined company will be named PotlatchDeltic Corp. and its shares will trade on Nasdaq under the symbol PCH.
Under the terms of the deal, which was unanimously approved by the boards of both companies and is set to close in the first half of 2018, Deltic stockholders will receive 1.8 common shares of Potlatch stock for each common share of Deltic that they own. Potlatch stockholders will own approximately 65% of the combined company, and Deltic stockholders 35%.
The agreement also provides for Deltic to convert to a REIT structure.
Once merged, it will operate eight wood products manufacturing facilities, including six lumber mills, one MDF plant, and one plywood mill. It will also own 2 million acres of timberland, including about 1.1 million acres in the South, 600,000 acres in Idaho, and 150,000 acres in Minnesota.
Potlatch’s Mike Covey will continue to as chairman and CEO, and Eric Cremers as president and COO. Deltic president/CEO John Enlow will become vice chairman and will lead the integration of the two businesses.
The new board of directors will comprise eight directors from Potlatch and four from Deltic.
The corporate headquarters will be in Spokane, with the southern operational headquarters in El Dorado.