Toll Brothers is buying the homebuilding business of Shapell Industries Inc. for about $1.6 billion in a move aimed at strengthening its position in California.

The announcement comes three days after Tri Pointe Homes Inc. said that it would combine with Weyerhaeuser Co.'s homebuilding business in a deal valued at about $2.7 billion. The transactions are the latest efforts being made by homebuilders to bolster their businesses in growing markets while the housing recovery continues.

Privately held Shapell, founded in 1955, builds luxury homes in the coastal markets of Northern and Southern California. The Shapell family will remain owners of its retail, commercial and multi-family businesses.

Luxury homebuilder Toll said that the deal gives it Shapell's land portfolio, which includes parcels in wealthy, high-growth markets such as metro Los Angeles, Orange County, Carlsbad and the San Francisco Bay area. Toll entered the California market in 1994. It has produced approximately $6.5 billion in revenue from more than 90 communities in the state.

Toll anticipates acquiring about 5,200 lots from Shapell, which would bring its total lots owned and controlled in California to approximately 9,200.

"Shapell's current portfolio dovetails perfectly with our own California footprint and luxury brand, and adds meaningfully to our presence in premier coastal locations in California," Toll CEO Douglas C. Yearley Jr. said in a statement.

Toll Brothers Inc. expects to acquire about 5,200 lots from Shapell. It plans to sell about $500 million worth of land after the buyout closes.

The acquisition is targeted to close in the first quarter of 2014. It is expected to add to Toll's earnings in the first year excluding transaction costs.

Toll Brothers said Thursday that it expects fourth-quarter revenue of approximately $1.04 billion and full-year revenue of about $2.67 billion. Analysts surveyed by FactSet predict fourth-quarter revenue of $930.2 million and full-year revenue of $2.55 billion.

Toll Brothers expects to report its final fourth-quarter and full-year financial results in early December.

The homebuilder also announced that it is starting a public offering of approximately 6.3 million shares of its common stock. It is giving the underwriters a 30-day option to buy up to an additional 937,500 shares.

Toll plans to use the offering's net proceeds to finance part of the proposed Shapell acquisition.

Toll's stock rose 43 cents to $32.95 in premarket trading Thursday.