SPOKANE, Wash. (News release) -- PotlatchDeltic Corporation announced a merger with Loutre Land and Timber Company ("Loutre"). 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 high-quality, well-stocked timberlands in southern Arkansas and northern Louisiana.
Key attributes of the Loutre timberlands:
- Stocking levels of approximately 90 tons per acre
- Average age of the timber is greater than 40 years
- Sawlogs represent approximately 70% of the timber inventory
- Highly integrated with PotlatchDeltic's existing timberlands and sawmills
- Expect annual average EBITDDA of $8.5 million and annual average capital expenditures of $600,000 over the first 10 years
"Loutre is a highly-attractive bolt-on acquisition that enhances our existing timberland footprint in southern Arkansas and northern Louisiana," said Eric Cremers, president and chief executive officer of PotlatchDeltic. "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. Loutre also increases our stable cash flows, which is key to growing our regular dividend sustainably over time," stated Mr. Cremers.
"Loutre has a long, rich history dating back to 1907," said Jeff Nolan, president and chief executive officer of Loutre. "This tax-free transaction provides a way for Loutre shareholders to maintain ties to that timber legacy, while creating liquidity for our growing shareholder base," stated Mr. Nolan.
"Most of Loutre's shareholders were also shareholders of Deltic Timber Corporation," said Chip Murphy, chairman of Loutre. "The PotlatchDeltic merger has been very successful and we have benefited from the management and performance of the combined entity. Transferring Loutre's timberlands for increased ownership in PotlatchDeltic provides higher dividends, flexibility and diversification to Loutre shareholders," stated Mr. Murphy.
PotlatchDeltic manages its timberlands on a sustainable basis. Forestry practices on the acquired acres will be subject to third-party certification to standards developed by the Sustainable Forestry Initiative®.
PotlatchDeltic (Nasdaq:PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources. More information can be found at www.potlatchdeltic.com.
Loutre Land and Timber Company is a closely held S Corporation that owned and managed 51,340 acres of highly productive timberlands in southern Arkansas and northern Louisiana. The company was headquartered in El Dorado, Arkansas.