Rayonier has announced the sale of its 77% interest in its New Zealand joint venture to The Rohatyn Group (TRG) for $710 million, valuing the joint venture at an enterprise value of $922 million. The sale is subject to net debt, working capital, and other adjustments.
The New Zealand joint venture manages approximately 287,000 productive acres of timberland as of December 31, 2024. The transaction is expected to close in 2025, pending regulatory approvals and other conditions.
Rayonier’s decision to exit New Zealand is aimed at focusing its capital in U.S. markets with stronger long-term growth potential. The sale is expected to simplify Rayonier’s financial reporting and reduce exposure to international log export markets.
TRG, known for its expertise in managing forestry assets, will oversee the New Zealand business following the sale. TRG's experience and capital strategy are expected to support growth in the New Zealand timberland operation.
Rayonier expects the transaction to reduce its pro forma Net Debt to pro forma Adjusted EBITDA ratio to approximately 0.3x, before accounting for capital returns or reinvestment. The company also anticipates declaring a special dividend for 2025, projected at $1.00 to $1.40 per share, with details to be confirmed later in the year.
This sale follows Rayonier’s earlier asset disposition and capital structure realignment plan announced in November 2023. With this latest transaction, Rayonier’s total completed or pending dispositions have reached $1.45 billion, surpassing its initial $1 billion target.
