Rayonier Inc. (RYN), a maker of specialty wood pulp used in cigarette filters, will spin off its performance fibers business from its forest resources and real estate segments, creating two independent, public companies.
The separation will be complete by the middle of the year, the Jacksonville, Florida-based company said in a statement today. The forest resources and real estate company will keep the Rayonier name, while the performance fibers company has yet to be named, the company said.
“The company has evolved into two distinct businesses and investment opportunities,” Paul Boynton, Rayonier’s chairman and chief executive officer, said in the statement. After the separation, Boynton will become CEO of the performance fibers company, and chief financial officer Hans Vanden Noort will retain his position at Rayonier. Each company will be listed on the New York Stock Exchange and both expect pay dividends, the company said.
Bank of America Corp. and Credit Suisse Group AG are acting as financial advisers. Wachtell, Lipton, Rosen & Katz is serving as legal adviser.
(Rayonier is holding a conference call to discuss the announcement starting at 10 a.m. Dial 888-989-7543. Passcode is Rayonier.)
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