The News
We’re pleased to report that our client, TRI Pointe Homes, has acquired Weyerhaeuser Co.’s homebuilding operations. The $2.8 billion acquisition has launched the Irvine, CA based company into the big leagues, now the 16th largest builder in the United States by sales last year.
The Deal
The transaction enhances TRI Pointe’s geographic presence by adding Weyerhaeuser’s established collection of quality homebuilding companies, which will continue to operate under their respective brand names:
- TRI Pointe Homes – Northern and Southern California and Colorado
- Pardee Homes – Southern California and Southern Nevada
- Winchester Homes – Washington, DC metro area and Richmond, Virginia
- Maracay Homes – Phoenix and Tucson, Arizona
- Trendmaker Homes – Houston, Texas
- Quadrant Homes – Puget Sound region of Washington State
These companies boast some of the most experienced leadership teams in the home building industry, averaging over 20 years of experience. The combined company will continue to be governed by TRI Pointe’s seasoned and respected executive management team. Barry S. Sternlicht will remain as Chairman of the TRI Pointe Board of Directors, which has been expanded from seven to nine directors. Doug Bauer will continue to serve as Chief Executive Officer of TRI Pointe, Tom Mitchell as President and Chief Operating Officer, and Mike Grubbs as Chief Financial Officer.
What’s Next?
Having just celebrated the company’s fifth anniversary in June, TRI Pointe now plans to expand into new territories and business lines. The first thing Chief Executive Douglas Bauer intends to do is to expand the new company from within, which will include beefing up TRI Pointe’s financial business.
Now under the control of home-building executives rather than the timber conglomerate, Weyerhaeuser, the former Weyerhaeuser divisions are expected to yield more growth than previously seen from them.
The sky seems to be the limit on what this merger might do for TRI Pointe's operations. Good luck, guys!
Source: The Wall Street Journal
