The acquisition is designed to help underpin Barratt’s offsite construction ambitions.
In 2018 Barratt adopted a target of building at least 20% of its homes using an element of offsite construction, including timber frame, by 2020.
Over the last three years, Barratt has built approximately 5,500 homes using timber frame construction. It currently uses timber frame in the majority of residential properties it builds in Scotland and is increasing its use across England and Wales.
Oregon Timber Frame has its headquarters in Selkirk in the Scottish Borders, with an additional factory in Burton upon Trent. It is one of Barratt's key timber frame suppliers.
Last year Oregon completed a buy-out of its non-management shareholders, including the 15% stake in the business held by its largest external shareholder group, Archangel Investors.
Its most recently filed accounts show that Oregon turned over £24m in 2017 and made a profit before tax of £1.8m.
Barratt Developments chief operating officer Steven Boyes said: "Barratt is committed to increasing the number of homes we build using offsite construction as part of our overall volume growth aspirations and to mitigate the current skills challenges facing the industry. Oregon is the perfect company to help us do that, with a highly experienced management team, a skilled workforce and a high quality product."
Oregon Timber Frame chairman Rod Lawson said: "We're very proud of what we have achieved over the last two decades, building a successful company with a fantastic workforce. Now we welcome the next chapter with Barratt who are as committed to quality as we are and have exciting plans for the future of both of our businesses."