IRVINE, Calif. (AP) — Tri Pointe Homes Inc. is combining with Weyerhaeuser Co.'s homebuilding business in a deal valued at about $2.7 billion, looking to become a bigger player in the sector as the housing market continues its recovery.
Tri Pointe said Monday that the transaction will make it one of the 10 biggest U.S. homebuilders based on estimated combined equity market value.
Until now, Tri Pointe's primary focus has been on midrange to upscale single-family homes in major metropolitan areas in southern and northern California. It recently added the Colorado market to its portfolio, but the deal with Weyerhaeuser expands its reach even further.
Tri Pointe will acquire five brands from Weyerhaeuser: Pardee Homes, Trendmaker Homes, Maracay Homes, Winchester Homes and Quadrant Homes. Pardee Homes has operations in southern California, but it also will give Tri Pointe access to the Las Vegas market. Trendmaker Homes has operations in Texas, while Maracay Homes is in Arizona. Winchester Homes provides entry to the Washington, D.C., metro area and Quadrant Homes to the Puget Sound region in Washington.
While the housing market's recovery has been steady, homebuilders have been selective in their consolidation efforts. They've picked their spots wisely, trying to ensure the best fit for their business. In June Ryland Group Inc. purchased the Dallas/Fort Worth operations of LionsGate Homes, expanding its presence in the region. And last month William Lyon Homes — which went public in May — said it was bolstering its Colorado presence, acquiring four new home communities there under the Village Homes brand.
Weyerhaeuser's decision to shed its homebuilding operations comes after the company announced a strategic review of the unit in June. Weyerhaeuser President and CEO Doyle Simons said in a statement that the company decided that the combination with Tri Pointe provided the greatest value for its shareholders.
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