Jacksonville, Florida, USA, 16 September 2011 -- (BUSINESS WIRE) -- Rayonier (NYSE: RYN) today announced it has signed an agreement to acquire approximately 250,000 acres of timberlands from Joshua Timberlands LLC and Oklahoma Timber, LLC for USD 330 million. The acquisition, which is expected to close in the fourth quarter of this year, will initially be funded using cash, Rayonier's revolving credit facility, and the assumption of existing debt of the sellers. Closing is subject to customary timberland transaction conditions.
"The quality and location of these timberlands make them an excellent strategic fit for Rayonier," said Lee M. Thomas, chairman and chief executive officer. "This transaction is a major step forward in our strategy to grow and diversify Rayonier's timberland ownership while allowing for further expansion of our rural land sales program."
The timberlands are located in Mississippi, Louisiana, Oklahoma, and Alabama. Upon completion of the acquisition, Rayonier will own, lease, or manage approximately 2.7 million acres in 10 states, and in New Zealand.
Rayonier is a leading international forest products company with three core businesses: Forest Resources, Real Estate, and Performance Fibers. The company's holdings include approximately 200,000 acres with residential and commercial development potential along the Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. Its Performance Fibers business is one of the world's leading producers of high-value specialty cellulose fibers, which are used in products such as filters, pharmaceuticals, and LCD screens. Approximately 45% of the company's sales are outside the United States to customers in approximately 40 countries. Rayonier is structured as a real estate investment trust. More information is available at www.rayonier.com.