IRVINE,CA-Tri Pointe Homes Inc. is combining with Weyerhaeuser Co.’s homebuilding business in a deal valued at about $2.7 billion.

Tri Pointe said earlier this week that the transaction will make it one of the 10 biggest U.S. homebuilders based on estimated combined equity market value, Yahoo News reported.

Until now, Tri Pointe’s main focus has been on midrange to upscale single-family homes in major metros in southern and northern California. The company recently expanded into the Colorado market, but the deal with Weyerhaeuser extends its reach even further.

Tri Pointe will acquire five brands from Weyerhaeuser. Weyerhaeuser’s decision to divest its homebuilding operations comes after the company announced a strategic review in June.

The deal includes about 130 million Tri Pointe shares valued at $2 billion and a payment of about $700 million in cash to Weyerhaeuser.

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