- Rayonier ( NYSE: RYN ) said Wednesday it inked two separate deals to acquire ~172.4K acres of commercial timberlands in Texas, Georgia, Alabama, and Louisiana for ~$474M from Manulife Investment Management, a timberland investment manager.
- ~80% of the acquisitions consist of fee ownership and remaining 20% consist of a long-term lease.
- The timberlands are located across four of the strongest southern U.S. timber markets.
- For the acquired fee lands, 72% are plantable with an average expressed site index of 73 ft, which translates to an expected sustainable yield of ~670K tons per year.
- The acquired fee lands contain 7.5M tons of merchantable timber inventory, 66% of which consists of higher-value grade products.
- The timberlands are expected to generate an average annual harvest volume of ~860K tons over the next 10 years.
- The acquisitions will be accretive to cash flow, with average annual adj. EBITDA contribution of ~$25M expected from timber operations over the next ten years.
- The acquisitions, which will be financed with cash on hand and proceeds from incremental borrowings through the Farm Credit System, are expected to close in Q4.
For further details see:
Rayonier to acquire 172K acres of commercial timberlands in southern US for $474M