By a News Reporter-Staff News Editor at Real Estate Weekly News -- Rayonier Inc. (NYSE:RYN) announced updates on the planned separation of its performance fibers business from its forest resources and real estate businesses. The separation will occur by means of a tax-free spin-off of a newly formed company named Rayonier Advanced Materials Inc., which will contain the Performance Fibers segment of Rayonier and is expected to be traded on the NYSE under the symbol "RYAM."
"We are on target to complete the separation by our mid-year goal," said Paul Boynton, Chairman, President and CEO. "We anticipate that we will receive a private letter ruling from the Internal Revenue Service confirming the tax-free nature of the separation. Additionally, we are in the process of finalizing the spin-off related Form 10 registration statement with the Securities and Exchange Commission."
Also, as previously disclosed, several members of the Board of Rayonier will join the Board of Rayonier Advanced Materials. Recruitment of additional Board members for each of the companies is nearly complete and expected to be announced at the end of May.
"The quality and experience of our additional new board members is excellent. They will provide valuable perspective and counsel to both boards and management teams going forward," noted Boynton.
As previously disclosed, upon completion of the separation, Mr. Boynton will become Chairman, President and CEO of Rayonier Advanced Materials. Mr. Boynton has been working closely with the Rayonier Board to identify the new CEO of Rayonier Inc., with the search including both internal and external candidates. We are in the final stage of the process and expect to announce the identified new CEO of Rayonier in early May.
"We've been very pleased with the CEO search process and are very confident that the new CEO will continue Rayonier's history of building shareholder value for the long term," said Boynton.
Rayonier also announced that H. Edwin Kiker will become its next Senior Vice President and Chief Financial Officer, effective May 1, 2014. Kiker, who will report to the new CEO of Rayonier upon separation, has held a series of senior roles with Rayonier during his twelve-year tenure with the company, including Controller of Rayonier's Real Estate business, Vice President of Internal Audit and, most recently, Vice President of Investor Relations. Prior to joining the Company, he held audit positions with Great Lakes Chemical and PricewaterhouseCoopers. He will replace Hans Vanden Noort, Rayonier's current Senior Vice President and Chief Financial Officer since 2007, who plans to retire from Rayonier effective April 30, 2014.
"Over his long and successful career, Ed has worked closely with three CEOs of Rayonier and numerous current and former Rayonier Board members and has our complete trust and confidence," stated Boynton. "Ed's thorough knowledge of Rayonier's financial operations, along with the strong relationships he has developed with our investors and his long tenure working closely with Hans, will ensure a seamless transition to his new role. Ed will also be invaluable in assisting Rayonier's new CEO to continue building shareholder value."
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