Federal Way, Washington-based Weyerhaeuser Company announced the successful closing of a deal to separate its home-building business from its forest products core.
The previously announced "Reverse Morris Trust" transaction results in the merger of a TRI Pointe Homes subsidiary and Weyerhaeuser Real Estate Co., Weyerhaeusers’ home-building business. WRECO becomes a wholly owned subsidiary of TRI Pointe.
"The separation of WRECO focuses Weyerhaeuser on its forest products businesses while significantly enhancing shareholder value," said Doyle Simons, president and CEO.
As a result of this transaction, Weyerhaeuser received approximately $700 million in cash proceeds and retired over $1.9 billion worth of the company's shares.