Irvine-based TRI Pointe Homes Inc. confirmed on Monday it would be acquiring the homebuilding division of Federal Way, Wash.-based timber conglomerate Weyerhaeuser Co., in a $2.7 billion deal.

TRI Pointe said the deal, rumored to be in the works for about two weeks, should close in the second quarter of 2014.

The deal represents a big step up in size for TRI Pointe, a 4-year-old company which in January became the first U.S. homebuilder to go public via an initial public offering in nearly eight years.

The Weyerhaeuser unit owns about 27,000 home lots on a consolidated basis and sold about 2,300 homes last year for about $1.07 billion in revenue. It has five homebuilders in its portfolio, including El Segundo-based Pardee Homes, long one of Southern California’s more active builders.

The other four builders focus on Washington, Texas, Arizona, Nevada and Washington, DC.

The combined companies will make TRI Pointe one of the 10 largest homebuilders in the United States based on estimated combined equity market value, according to the company.

TRI Pointe will remain based in Irvine, with its existing management team taking charge of the combined businesses.

The deal “transforms TRI Pointe into one of the leading players in the homebuilding industry,” Doug Bauer, TRI Pointe’s chief executive, said in a statement. “This transaction uniquely positions us to build on our established momentum, expand our footprint and capitalize on new growth opportunities.”

TRI Pointe will issue $2 billion of new shares as part of the transaction, in addition to paying $700 million in cash to the acquired company’s former parent.

Shares of TRI Pointe's common stock were up by more than 7% during mid-morning trading, at a market value of about $526 million.