PotlatchDeltic
| File:Potlatch Corp Logo.svg | |
| Company type | Public |
|---|---|
| Template:NASDAQ S&P 400 Component | |
| Industry | Forestry Real estate |
| Founded | 1903 originally as Potlatch Lumber |
| Headquarters | Spokane, Washington |
Key people | Eric Cremers (CEO, president) Jerald Richards (CFO) |
| Products | Lumber, Plywood |
| Revenue |  $1.337 billion (2021) |
| $551 million (2021) | |
| $423 million (2021) | |
| Total assets | $2.535 billion (2021) |
| Total equity | $1.526 billion (2021) |
Number of employees | 1,299 (2021) |
| Subsidiaries | Potlatch TRS |
| Website | potlatchdeltic |
PotlatchDeltic Corporation[1] is a U.S.-based diversified forest products enterprise with its headquarters located in Spokane, Washington.
The firm produces and markets lumber, panels, and particleboard, while also earning income from mineral rights, leasing land, and selling non-core properties. In February 2018, Potlatch acquired the Arkansas-based Deltic Timber Corp., subsequently adopting the name PotlatchDeltic Corporation.[2][3] During 2021, the company harvested approximately 5.5 million tons of lumber.[4] The following year, PotlatchDeltic merged with CatchMark Timber Trust, Inc.
Origins
Established in 1903 as the Potlatch Lumber Company, the business was founded with $3 million in capital by a group of lumber industry investors including William Deary from Northland Pine Company, Henry Turrish from Wisconsin Log and Lumber, and Frederick Weyerhaeuser.[5] Charles A. Weyerhaeuser, son of Frederick, served as the inaugural President until 1930, while Deary held the role of General Manager.[6] Construction began in 1905 on a lumber mill situated on the Palouse River in north-central Idaho, reaching completion in 1906.
The company was instrumental in establishing the town of Potlatch, Idaho, which was planned by architect C. Ferris White. This town grew to become Latah County’s second largest community and a significant contributor to Idaho’s tax base.[7] The commercial district there, including the principal administrative building, earned a place on the National Register of Historic Places in 1986.[8] Additionally, Deary oversaw construction of a logging railroad connecting the mill to the Milwaukee Road’s Pacific Extension; the adjacent town of Deary, Idaho was named in his honor.
In response to surplus timber during the Great Depression and after acquiring Clearwater Timber and Edward Rutledge Timber companies in 1931, the organization reorganized as Potlatch Forests, Inc. (PFI). It managed several sawmills including those located in Lewiston and Coeur d'Alene until their eventual closures decades later.[9]
Sustainable Forest Management
In 1931, John Philip (Phil) Weyerhaeuser, Jr., nephew of Charles A. Weyerhaeuser, assumed the presidency of PFI. While serving as general manager at Clearwater Timber, he pioneered the United States' first program treating timber as a renewable crop through sustainable forest management. PFI maintained this initiative, and Phil significantly broadened its scope upon joining Weyerhaeuser Timber Company in 1933.
Following Phil's tenure, C.L. Billings led PFI until 1949, promoting sustained yield forestry practices throughout the Inland Northwest region. The company began distributing dividends starting in 1940.
Postwar Expansion
PFI experienced substantial growth during the post-World War II economic boom, expanding both its product range and its manufacturing and sales presence nationwide. Notable milestones include:
- 1950: Establishment of the inaugural pulp and paperboard mill at the Lewiston sawmill location
- 1953: Entry into the tissue market through acquisition of a paper mill in Pomona, California
- 1958: Acquisition of Southern Lumber Company alongside Bradley Lumber Company in Warren, Arkansas
- 1963: Commencement of private label tissue manufacturing at the Lewiston facility
- 1964: Purchase of Northwest Paper Company in Cloquet, Minnesota, coupled with relocating executive offices to San Francisco
- 1968: Acquisition of a plywood manufacturing plant in St. Maries, Idaho
- 1973: Corporate rebranding to Potlatch Corporation to signify diversification efforts
- 1977: Construction of a second pulp and paperboard facility, Cypress Bend Mill, situated in Arkansas City, Arkansas
Modern Day
The Lewiston mill ceased operations in August 1981, with permanent closure finalized by 1983. In 1985, First City Financial Corporation, led by Canadian entrepreneur Samuel Belzberg, attempted a takeover; however, Potlatch reacquired 1.1 million shares for $8.1 million, thereby reaffirming control under the Weyerhaeuser family.
Operations at the Rutledge mill in Coeur d'Alene continued until October 1987; the property was sold in 1988 and transformed into a golf course for the Coeur d'Alene Resort by 1991. Remaining structures were intentionally burned during a firefighting training exercise in June 1988.
After spending over three decades headquartered in San Francisco, Potlatch relocated its corporate offices to downtown Spokane in 1997; previously, from 1931 to 1965, its base was in Lewiston, Idaho.
In March 2002, Potlatch divested its pulp and printing paper plants in Cloquet, Minnesota to Sappi Limited for $480 million, marking its exit from the coated printing papers sector. Sappi subsequently shut down these operations and moved production to Maine.
Potlatch transitioned into a real estate investment trust (REIT) structure in 2006, maintaining its manufacturing units within a wholly owned subsidiary to concentrate on managing vast land assets spanning Oregon, Idaho, Minnesota, and Arkansas.
The acquisition of Deltic Timber Corp., an Arkansas-based timber firm, was completed in February 2018. The combined company adopted the name PotlatchDeltic Corporation and collectively managed nearly two million acres of timberland.
Properties
The corporation holds ownership of extensive timberland across Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. Its forest products are processed through seven facilities operated directly by the company.
Spin-off of Clearwater Paper
Clearwater Paper Corporation was separated from Potlatch on December 9, 2008, and established its main office in Spokane. Gordon L. Jones, who had previously served as a vice-president at Potlatch, was appointed as president and CEO.
Shares of Clearwater Paper (NYSE:CLW) were allocated to Potlatch shareholders at a rate of one Clearwater share for every 3.5 Potlatch shares owned, with cash compensation provided for any fractional shares. The stock began trading on December 16, 2008.
By August 2012, facing underperformance in its stock value, Clearwater Paper explored the possibility of dividing and divesting one or both of its operating divisions.
See also
External links
- University of Idaho Library – Potlatch Lumber Company Photograph Collection
- ↑ "Potlatch and Deltic Timber Complete Merger". February 20, 2018. Retrieved May 14, 2018.
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