TRI Pointe Homes, Inc. (NYSE: TPH) (“TRI Pointe” or the “Company”)
announced today that its Reverse Morris Trust transaction with
Weyerhaeuser Company (NYSE: WY) (“Weyerhaeuser”) has closed. The
transaction, one of the biggest in homebuilding industry history, has
resulted in the merger of TRI Pointe with Weyerhaeuser's homebuilding
subsidiary, Weyerhaeuser Real Estate Company (“WRECO”). The transaction
is valued at approximately $2.8 billion and positions TRI Pointe as one
of the top 10 largest public homebuilders in the United States by equity
market capitalization based on the closing price of TRI Pointe common
stock on July 3rd, 2014.
As a result of the merger with WRECO, TRI Pointe’s land inventory has
increased to approximately 31,000 owned or controlled lots with more
than 19,000 of those lots located in entitlement-constrained California,
where TRI Pointe’s management team has substantial experience and an
established history of success. The additional land holdings provide the
necessary land supply and diversification for future land and lot sales
as well as increased home deliveries.
The transaction enhances TRI Pointe’s geographic presence by adding
WRECO’s established collection of quality homebuilding companies, which
will continue to operate under their respective brand names:
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TRI Pointe Homes – Northern and Southern California and Colorado
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Pardee Homes – Southern California and Southern Nevada
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Quadrant Homes – Puget Sound region of Washington State
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Maracay Homes – Phoenix and Tucson, Arizona
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Trendmaker Homes – Houston, Texas
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Winchester Homes – Washington, DC metro area and Richmond, Virginia
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.
“Doug, Tom and Mike are a best-in-class executive team with deep
managerial talent and a proven track record running a large,
geographically diverse, growth-oriented public homebuilding company,”
said Mr. Sternlicht, who also serves as Chairman and Chief Executive
Officer of Starwood Capital Group, which financed TRI Pointe in 2010. “I
am confident that they will build upon their past success and lead TRI
Pointe to greater achievements as we look to take advantage of the
enormous growth opportunities in the marketplace.”
TRI Pointe's leadership remains focused on executing a disciplined
homebuilding strategy. The merger with WRECO is expected to provide TRI
Pointe with significantly enhanced scale, with more than 3,400 new home
deliveries and $1.6 billion in revenue on a historical combined basis
over the past twelve months ended March 31, 2014.
“With the success of this completed merger, TRI Pointe is
well-positioned as a leading homebuilder focused on some of the nation’s
most attractive housing markets,” stated Mr. Bauer. “As we have
demonstrated since we went public only 18 months ago, we continue to
successfully deliver and execute on the strategy of securing new
opportunities for growth while executing our plan to deliver earnings
over time. These factors, combined with enhanced liquidity, the right
land supply and geographic diversification, should provide a runway for
sustainable growth.”
About TRI Pointe
Headquartered in Irvine, California, TRI Pointe Homes, Inc. (NYSE: TPH)
is one of the top 10 largest public homebuilders by equity market
capitalization in the United States. The company designs, constructs and
sells innovative single-family homes and condominiums through its
portfolio of six quality brands, which include Maracay Homes of Arizona;
Pardee Homes of California and Nevada; Quadrant Homes of Washington;
Trendmaker Homes of Texas; TRI Pointe Homes of California and Colorado;
and Winchester Homes of Washington DC and Virginia. Additional
information is available at www.tripointehomes.com.
Forward-Looking Statements
Except for the historical information contained in this press release,
the matters set forth in this press release, including statements
regarding the Company's plans with respect to building and selling
homes, are forward-looking statements within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including, but not limited to, the risks and uncertainties associated
with TRI Pointe’s ability to integrate WRECO successfully and to achieve
anticipated synergies; the risk that disruptions from the transaction
will harm TRI Pointe’s businesses; the effect of general economic
conditions, including employment rates, housing starts, interest rate
levels, availability of financing for home mortgages, the strength of
the U.S. dollar, adverse weather, regulatory approvals, labor shortages
and other risks detailed in the Company's Annual Report on Form 10-K for
the year ended December 31, 2013 and other documents subsequently filed
with or furnished to the Securities and Exchange Commission. However, it
is not possible to predict or identify all such risks and uncertainties.
Consequently, while the foregoing list is considered representative, no
such list should be considered to be a complete statement of all
potential risks and uncertainties. These forward-looking statements are
based on current information that may change and you are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary statement,
and the Company undertakes no obligation to revise or update any
forward-looking statement to reflect events or circumstances after the
issuance of this press release.
Copyright Business Wire 2014