Phoenix-based Maracay Homes announced that it has combined with TRI Pointe Homes, Inc. (NYSE: TPH) (“TRI Pointe”) as part of the merger between TRI Pointe and Weyerhaeuser Real Estate Company (“WRECO”), which counts Maracay Homes in its family of builders. The transaction, one of the largest in homebuilding history, is valued at approximately $2.8 billion. It 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 3, 2014.
“We are excited to announce that the transaction with TRI Pointe has officially closed and that we are part of a dynamic and highly respected group of companies,” said Andy Warren, president of Maracay Homes. “The ability to tap into the financial strength of our new parent company while still remaining an active decision maker at the local level will give us a heightened capacity to grow our operations in the Arizona market.”
“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,” said Doug Bauer, Chief Executive Officer of TRI Pointe. “Having built a stellar reputation for innovative design and outstanding quality over the more than 20 years it has operated in the Arizona market, Maracay Homes will continue to be led by the exceptional local, executive team that has helped build its standing as a market leader. Like TRI Pointe, Maracay Homes’ success is largely driven by its entrepreneurial spirit and ability to make decisions on a local basis. That philosophy will stay in place, as Maracay Homes will continue to craft customizable, energy-efficient homes that deliver comfort, style and sustainability.”
Maracay Homes’ beautiful single-family homes are designed for the way premium buyers want to live. The company will continue to offer its suite of proprietary processes and tools, which include FlexDesign® and LivingSmart®, to increase home buyers’ customization options.
Maracay Homes is one of the five WRECO homebuilding companies that have joined TRI Pointe as part of the larger merger with WRECO. With complementary geographic footprints, the new TRI Pointe companies, which will continue to operate under their respective brand names, include:
Maracay Homes – Phoenix and Tucson, Arizona
TRI Pointe Homes – Northern and Southern California and Colorado
Pardee Homes – Southern California and Las Vegas, Nevada
Quadrant Homes – Puget Sound region of Washington State
Trendmaker Homes – Houston, Texas
Winchester Homes – Washington, DC metro area and Richmond, Virginia
The leadership at all levels will remain focused on executing a disciplined homebuilding strategy, including securing new opportunities for growth. Barry S. Sternlicht, Chairman and Chief Executive Officer of Starwood Capital Group, will remain as Chairman of the TRI Pointe Board of Directors, which has been expanded from seven to nine directors. 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.