Two major woodlands companies, Potlatch and Deltic Timber, are combining in a stock deal that will leave Potlatch shareholders with 65 percent control of the new company, which will be organized as a real estate investment trust. Deltic shareholders will get 1.8 shares of Potlatch for each Deltic share, making the deal worth about $1.18 billion.
Both companies had been looking for ways to improve their conditions. Potlatch struggled with volatility in the lumber business. Deltic was being pressured by a shareholder to increase value.
Deltic was founded by Charles Murphy, the oil company leader. Its investments include mills, about
Potlach’s current CEO, Mike Covey, will lead the renamed PotlatchDeltic Corporation.