PotlatchDeltic Merges With Loutre, Gets 51,000-Plus Acres of Timberlands

PotlatchDeltic Merges With Loutre, Gets 51,000-Plus Acres of Timberlands

PotlatchDeltic Corp. of Spokane, Washington, has announced a merger with Loutre Land & Timber Co. of El Dorado. 

PotlatchDeltic issued 1.96 million shares of common stock and assumed debt of $6.6 million in exchange for Loutre’s 51,340 acres of timberlands in south Arkansas and northern Louisiana, the publicly traded company (NASDAQ: PCH) said in a news release. The real estate investment trust said the timberlands provide stocking levels of about 90 tons per acre.

PotlatchDeltic expects the land to generate $8.5 million annually in average earnings before interest, taxes, depreciation and amortization. Average capital expenditures per year were projected to be $600,000 over the first 10 years.

Eric Cremers, president and CEO of PotlatchDeltic, said the land "enhances our existing timberland footprint" in the region. 

“We know the markets well and our integrated operating model will create additional value as we process the mature timber in our Waldo and Warren, Arkansas sawmills," he said in the release. "Loutre also increases our stable cash flows, which is key to growing our regular dividend sustainably over time."

Loutre Chairman Chip Murphy said most of Loutre’s shareholders were also shareholders of Deltic Timber, the El Dorado timber company acquired by Potlach in 2018.

"The PotlatchDeltic merger has been very successful and we have benefited from the management and performance of the combined entity," Murphy said. "Transferring Loutre’s timberlands for increased ownership in PotlatchDeltic provides higher dividends, flexibility and diversification to Loutre shareholders."

PotlatchDeltic owns about 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. It operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.

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