PotlatchDeltic to Merge With CatchMark Timber


PotlatchDeltic to Merge With CatchMark Timber

PotlatchDeltic Corp. of Spokane, Washington, which has major operations in south Arkansas, has announced a merger with the publicly traded CatchMark Timber Trust Inc. (NYSE: CTT) of Atlanta.

CatchMark brings about 350,000 acres of timberlands in Alabama, South Carolina and Georgia to the deal, giving the combined company more than 1.5 million acres across the South. In total, the company will own about 2.2 million acres of timberlands. 

"With CatchMark, we gain significant scale in three states and diversify our timberland holdings into some of the strongest markets in the U.S. South," PotlatchDeltic President & CEO Eric Cremers said in a news release. "In addition, the location of CatchMark's land near large population centers provides attractive rural real estate sales opportunities."

The combined company is expected to have a pro forma market capitalization over $4 billion and total enterprise value of more than $5 billion, including $557 million in net debt. 

The transaction is expected to close in the second half of 2022. Due to the transaction, CatchMark has postponed its annual stockholders meeting, which had been scheduled for June 14.

CatchMark stockholders will receive 0.23 common shares of PotlatchDeltic stock for each common share of CatchMark that they own, the company said in the release. After the deal closes, PotlatchDeltic stockholders will own approximately 86% of the combined company, and CatchMark stockholders will own approximately 14% on a fully diluted basis.

The board of directors of the combined company will consist of nine directors from PotlatchDeltic (Nasdaq: PCH) and one director from CatchMark.

The corporate headquarters will be maintained in Spokane. A regional office will be maintained in Atlanta.

PotlatchDeltic in January expanded operations in El Dorado through an announced merger with Loutre Land & Timber Co. The deal gave it 51,340 acres of timberlands in south Arkansas and northern Louisiana.

PotlatchDeltic was formed in 2018 with the $1.2 billion merger of Deltic Timber Corp. of El Dorado and Potlatch Corp. of Spokane.


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