Rayonier Buys Pope
Rayonier buys Pope.
Rayonier buys Pope Resources for $554 million.
Pope, a timberland firm with roots in the founding of Port Gamble in 1853, was created by joining enterprises and assets of Pope & Talbot. Pope and its affiliates Olympic Resource and Olympic Property Group own and manage 125,000 acres of timberland and properties in Washington. Pope also co-invests in and combines three private equity timberland funds, owning 141,000 acres in Washington, Oregon, and California.
This deal allows Rayonier to enhance the scale, diversity, and cash flow potential of its Pacific Northwest holdings and allows Pope unitholders to share in the upside of a more diverse portfolio. Pope Resources’ extra 125,000 acres increase Rayonier’s Pacific Northwest sustainable yield by 32 percent and its Douglas-fir inventory by 13 percent. This adds physical and market diversity by boosting the ratio of ground-based logging at lower operating costs.
Pope Resources’ land portfolio includes high-potential HBU and real estate development prospects, with projects in Gig Harbor, Port Gamble, Kingston, and Bainbridge Island. These projects, conservation, and rural land sale openings enhance Rayonier’s pipeline of HBU opportunities. The joint operation will enjoy sharing best practices and optimizing log marketing and logistics. Besides the usual working efficacies and cost savings from integrating systems and people.
David Nunes of Rayonier said: ‘We are delighted to combine two premier pure-play timber organizations using an innovative tax-deferred UPREIT structure. Pope Resources has a strong track record as a best-in-class Pacific Northwest timberland operator and possesses a set of assets in high-quality markets. Our two organizations have compatible cultures, a complementary set of assets, and a shared dedication to value maximization through intensive silvicultural practices and higher-and-better-use real estate operations. The addition of these high-quality Pacific Northwest timberlands increases Rayonier’s ownership in the region to 504,000 acres, adds 57 MMBF to our sustainable yield, increases our proportion of Douglas-fir inventory, and offers a complementary age-class fit. We look forward to completing this transaction by mid-year, which continues our strategy of adding high-quality timberlands in strong log markets and building long-term value for our shareholders through prudent capital allocation.’
Tom Ringo of Pope Resources said: ‘This transaction is the culmination of a thorough process undertaken by Pope Resources’ board to maximize value for our unitholders. Rayonier is the leading pure-play timberland REIT, with a well-diversified portfolio of timberlands and an established track record of creating long-term value from its assets. This transaction will give our unitholders the opportunity to defer capital gains recognition and take part in Rayonier’s long-term upside potential, benefiting from a well-managed and diversified timberland portfolio while still enjoying a strong dividend yield. Like Pope Resources, Rayonier has a rich heritage of sustainably managing timberlands, and we look forward to working with them to realize the benefits of this combination on behalf of our unitholders.’
Credit Suisse served as financial advisor to Rayonier. Wachtell, Lipton, Rosen & Katz served as legal advisor.
Centerview Partners served as financial advisor to Pope Resources. Munger, Tolles & Olson and Davis Wright Tremaine served as legal advisors.
Rayonier buys Pope Resources for $554 million.
Pope, a timberland firm with roots in the founding of Port Gamble in 1853, was created by joining enterprises and assets of Pope & Talbot. Pope and its affiliates Olympic Resource and Olympic Property Group own and manage 125,000 acres of timberland and properties in Washington. Pope also co-invests in and combines three private equity timberland funds, owning 141,000 acres in Washington, Oregon, and California.
This deal allows Rayonier to enhance the scale, diversity, and cash flow potential of its Pacific Northwest holdings and allows Pope unitholders to share in the upside of a more diverse portfolio. Pope Resources’ extra 125,000 acres increase Rayonier’s Pacific Northwest sustainable yield by 32 percent and its Douglas-fir inventory by 13 percent. This adds physical and market diversity by boosting the ratio of ground-based logging at lower operating costs.
Pope Resources’ land portfolio includes high-potential HBU and real estate development prospects, with projects in Gig Harbor, Port Gamble, Kingston, and Bainbridge Island. These projects, conservation, and rural land sale openings enhance Rayonier’s pipeline of HBU opportunities. The joint operation will enjoy sharing best practices and optimizing log marketing and logistics. Besides the usual working efficacies and cost savings from integrating systems and people.
David Nunes of Rayonier said: ‘We are delighted to combine two premier pure-play timber organizations using an innovative tax-deferred UPREIT structure. Pope Resources has a strong track record as a best-in-class Pacific Northwest timberland operator and possesses a set of assets in high-quality markets. Our two organizations have compatible cultures, a complementary set of assets, and a shared dedication to value maximization through intensive silvicultural practices and higher-and-better-use real estate operations. The addition of these high-quality Pacific Northwest timberlands increases Rayonier’s ownership in the region to 504,000 acres, adds 57 MMBF to our sustainable yield, increases our proportion of Douglas-fir inventory, and offers a complementary age-class fit. We look forward to completing this transaction by mid-year, which continues our strategy of adding high-quality timberlands in strong log markets and building long-term value for our shareholders through prudent capital allocation.’
Tom Ringo of Pope Resources said: ‘This transaction is the culmination of a thorough process undertaken by Pope Resources’ board to maximize value for our unitholders. Rayonier is the leading pure-play timberland REIT, with a well-diversified portfolio of timberlands and an established track record of creating long-term value from its assets. This transaction will give our unitholders the opportunity to defer capital gains recognition and take part in Rayonier’s long-term upside potential, benefiting from a well-managed and diversified timberland portfolio while still enjoying a strong dividend yield. Like Pope Resources, Rayonier has a rich heritage of sustainably managing timberlands, and we look forward to working with them to realize the benefits of this combination on behalf of our unitholders.’
Credit Suisse served as financial advisor to Rayonier. Wachtell, Lipton, Rosen & Katz served as legal advisor.
Centerview Partners served as financial advisor to Pope Resources. Munger, Tolles & Olson and Davis Wright Tremaine served as legal advisors.
Comments
Post a Comment