There’s nothing like an initial public offering to provide some cash that up-and-coming companies can use to grow through acquisitions.
Irvine, Calif.-based Tri Pointe Homes Inc. — which in January became the first homebuilder to go public since 2004 — says it’s reached a deal to buy Weyerhaeuser Real Estate Co., the homebuilding and real estate subsidiary of Weyerhaeuser Co., in a transaction valued at about $2.7 billion.
The deal will add about 27,000 additional lots to Tri Pointe’s inventory (including 16,000 in “lot-constrained California markets”) that are owned or controlled by five distinct Weyerhaeuser Real Estate brands that are also part of the deal:
- Pardee Homes (Southern California and Las Vegas)
- Trendmaker Homes (Texas)
- Maracay Homes (Arizona)
- Winchester Homes (Washington, D.C., metro area)
- Quadrant Homes (Puget Sound region of Washington state).
Tri Pointe said it expects the deal to close by the end of June 2014. The company plans to make “no immediate changes to the operations of [Weyerhaeuser Real Estate’s] multiple brands and operating subsidiaries” and intends to provide “the necessary resources to support … the continued growth of each brand.” Source: tripointehomes.com.