Weyerhaeuser combining with Tri Pointe Homes

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Tri Pointe Homes Inc. of Irvine, Calif., is combining with Weyerhaeuser Co.’s homebuilding business in a deal valued at about $2.7 billion, the Associated Press reports.

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. Weyerhaeuser, based in Federal Way, will distribute ownership of Weyerhaeuser Real Estate Co. to its shareholders. That business will become a Tri Pointe subsidiary. Weyerhaeuser shareholders will receive approximately 80.5 percent of the combined company, with pre-transaction Tri Pointe shareholders owning the balance.

Tri Pointe said it will acquire five brands in the deal.

The company will continue to be based in Irvine, Calif.