RYN Rayonier Inc

Rayonier (NYSE:RYN) today announced that it is part of a consortium led by RREEF Infrastructure, the global infrastructure investing arm of Deutsche Asset Management, which has agreed to purchase 235,000 acres of New Zealand timberland from Carter Holt Harvey (CHH) for approximately US$296 million (at a New Zealand/U.S. dollar exchange rate of .68). The consortium has also agreed to purchase Rayonier's New Zealand timberland assets (118,000 acres) for approximately $184 million. Rayonier's REIT entity will have an investment in the consortium of between 40-49 percent, dependent on additional third party equity subscriptions and the consortium's level of debt. In addition, Rayonier will manage the consortium's timberland assets. The transactions will result in Rayonier recognizing a gain on sale of assets upon closing and redeploying significant cash back to the U.S. Closure of the transactions is expected in the fourth quarter. The completion of these two transactions will result in the consortium becoming the owner of the third largest forest plantation, by area, in New Zealand. CHH had advised that, under New Zealand law, it was obligated to fulfill its disclosure obligation immediately upon signing, and that it did so earlier today. Rayonier will fulfill its near-term U.S. SEC reporting obligations with a more comprehensive announcement on Wednesday, July 20, followed by an investor call that day. The additional disclosure time is necessary to incorporate late developments in the CHH transaction and other corporate developments into full year expected company results, all of which will be discussed on Wednesday. These developments include the decision of Rayonier's Board of Directors to authorize the sale of the company's medium-density fiberboard (MDF) business and take an appropriate related charge to earnings, and the favorable resolution of certain tax audits. The company expects that full year results, including and excluding the aforementioned developments, will be favorable to previous guidance. Rayonier has 2.2 million acres of timberland and real estate in the U.S. and New Zealand and is the world's leading producer of high performance specialty cellulose fibers. Approximately 40 percent of the company's sales are outside the U.S. to customers in more than 50 countries. Comments relating to anticipated earnings, acquisitions and transactions to be completed, and taxes are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following important factors, among others, could cause actual results to differ materially from those expressed in the forward-looking statements: the ability of the Company and the consortium to fulfill the conditions necessary to complete the transaction described in this release, including, without limitation, receipt of approval of the New Zealand Overseas Investment Commission, and the ability of the company to effectuate a sale of its MDF business on acceptable terms. In addition, future earnings could be affected by changes in global market trends and world events; interest rate and currency movements; fluctuations in demand for or supply of cellulose specialties, absorbent materials, timber, wood products or real estate and entry of new competitors into these markets; adverse weather conditions affecting production, timber availability and sales, or distribution; changes in production costs for wood products or performance fibers, particularly for raw materials such as wood, energy and chemicals; unexpected delays in the closing of real estate sale transactions; changes in law or policy that might limit or restrict the development of real estate, particularly in the southeastern U.S.; the ability of the Company to identify and complete timberland acquisitions; the Company's ability to satisfy complex rules in order to qualify as a REIT; the availability of tax deductions and the ability of the Company to complete tax-efficient exchanges of real estate; and implementation or revision of governmental policies and regulations affecting the environment, endangered species, import and export controls or taxes, including changes in tax laws that could reduce the benefits associated with REIT status. For additional factors that could impact future results, please see the company's most recent Form 10-K on file with the Securities and Exchange Commission. For further information, visit the company's web site at http://www.rayonier.com. Complimentary copies of Rayonier press releases and other financial documents are also available by mail or fax by calling 1-800-RYN-7611.