JACKSONVILLE, Fla. -- Rayonier Inc. announced that the company has entered into three transactions with separate sellers to acquire approximately 95,100 acres of high-quality industrial timberlands located in Florida, Georgia and South Carolina for an aggregate purchase price of approximately $217 million, or $2,280 per acre.
The Acquisitions are comprised of highly productive timberlands located in some of the strongest timber markets in the U.S. South, primarily along the I-95 coastal corridor near Savannah, GA.
Rayonier expects to finance the Acquisitions with cash on hand and the proceeds of a follow-on offering of Rayonier common shares, which the company also announced today.
"The Acquisitions announced today are representative of Rayonier's commitment to disciplined capital allocation and active portfolio management," said David Nunes, President and CEO. "These Acquisitions are comprised of highly productive properties that meaningfully bolster Rayonier's footprint in our strongest U.S. South markets. We expect these Acquisitions to generate a strong cash yield from timber harvest operations, which will thereby improve our overall cash flow profile, increase the percentage of our Adjusted EBITDA generated from timber segments, and enhance our 'pure-play' timber REIT focus," concluded Nunes.