Weyerhaeuser Closes Transaction to Separate Homebuilding Business
Print this Article | Send to Colleague
Weyerhaeuser Co., Federal Way, Wash., USA, this week announced the successful closing of its previously announced "Reverse Morris Trust" transaction, by which a wholly owned subsidiary of TRI Pointe Homes Inc. merged with and into Weyerhaeuser Real Estate Co. (WRECO), Weyerhaeuser's homebuilding business and an indirect wholly owned subsidiary, with WRECO surviving the merger and becoming a wholly owned subsidiary of TRI Pointe. The closing of the merger followed the expiration of the related exchange offer and the satisfaction of certain other conditions.
"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, we have received approximately $700 million in cash proceeds and retired more than $1.9 billion worth of the company's shares. The combination of WRECO with TRI Pointe will create a powerful stand-alone homebuilder with significant long-term potential for growth."
Weyerhaeuser anticipates an announcement regarding the company's quarterly dividend and potential uses of the cash proceeds from the WRECO transaction in mid-August. The timing of the announcement is expected to coincide with the company's August 13-14 meeting of its board of directors.
