Rayonier to Exit New Zealand After 36 Years in Forestry Sector

Highlights:

• Rayonier Inc. (NZX: RYN) is exiting New Zealand after 36 years, selling its 77% stake in a forestry joint venture for US$710 million (NZ$1.24 billion).
• The deal values the joint venture at US$922 million and includes the management of 116,145 hectares of forestry land.
• Rayonier is shifting focus to the U.S. market, aiming for higher growth opportunities in North American timberlands.

Major forestry company Rayonier Inc. (NZX: RYN) has announced its decision to exit the New Zealand market after 36 years, selling its 77% stake in a forestry joint venture. At the time of writing, the company has agreed to a deal worth US$710 million (NZ$1.24 billion) with its joint venture partner, The Rohatyn Group (TRG). The transaction involves transferring ownership to a company formed by Ents LP, an investment fund managed by TRG.

Multi-Billion-Dollar Deal Reshapes Forestry Industry

The deal, which values the joint venture at approximately US$922 million, includes the management of around 116,145 hectares of forestry land across New Zealand. Rayonier stated that this move aligns with its strategy to reallocate capital towards higher-growth opportunities, particularly in the United States.

Strategic Focus on U.S. Market

Rayonier’s decision to exit New Zealand is part of a broader plan to strengthen its presence in North America. The company believes focusing on U.S.-based timberlands will yield stronger returns in the long run. Industry analysts suggest that this shift could impact the local forestry sector, given Rayonier’s long-standing role in New Zealand’s timber industry.

What’s Next for New Zealand’s Forestry Sector?

With Rayonier stepping away, TRG is expected to consolidate its holdings and optimize its operations in the region. However, the shift raises questions about potential changes in land management strategies and forestry investment trends in New Zealand. Market watchers will be closely monitoring how TRG leverages this acquisition and what it means for the sector’s future.

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