Weyerhaeuser is selling its homebuilding division to Tri Pointe Homes in a $2.7 billion deal that will leave Weyerhaeuser shareholders in control of one of the 10-largest homebuilders in the United States.
Tri Pointe said the deal would give it control of about 27,000 lots in high-growth markets where there are shortages of land ready to build on.
Under terms of the transaction, Weyerhaeuser shareholders will receive about $2 billion in Tri Pointe's stock, based on Tri Pointe's Friday close of $15.38.
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The Weyerhaeuser unit, Weyerhaeuser Real Estate (WRECO), will also pay $700 million in cash to its parent.