Lennar to acquire WCI Communities for $643M

Merger will give Lennar WCI's 14,200 home sites in Florida

TRD MIAMI /
Sep.September 22, 2016 11:15 AM

The nation’s second largest homebuilder is acquiring WCI Communities in a merger valued at $643 million.

Miami-based Lennar Corp. will acquire Bonita Springs-based WCI into a newly formed Lennar subsidiary, the company announced on Thursday. Lennar will pay $23.50 per WCI share, which marks a 37 percent premium over WCI’s closing stock price on Wednesday.

The agreement includes a 35-day ‘go-shop’ provision that will allow WCI to seek out potentially superior proposals to maximize value for WCI stockholders, WCI said in a separate announcement.

For the last fiscal year ending on June 30, WCI completed 1,118 homes with an average price of $444,000, and has a portfolio of 14,200 home sites located in Florida’s top coastal markets, the company said.

Home prices have continued to rise following the 2007 housing crisis nationwide and in Florida.

Lennar CEO Stuart Miller said in a statement that WCI’s land portfolio will allow the home builder to “capture more of the move-up market.”

Lennar was ranked the second biggest homebuilder in the country according to the 2016 Builder 100 list. D.R. Horton came in at No. 1. WCI was No. 49, according to the list.

WCI’s stockholders have to approve the vote likely in December or January. Both of the company’s boards already approved the deal. – Katherine Kallergis


Related Articles

arrow_forward_ios
Arden home community and Stuart Miller

Lennar picks up 50 lots in western Palm Beach County

Lennar's Stuart Miller and a rendering of a Sierra Ranch home

Lennar closes on 89-acre Davie site for single-family home community

Daily Digest Miami

Here are the homes of Miami Heat’s elite, developer Steve Witkoff revealed as buyer of Sunset Islands home: Daily digest

Lennar at Sorrento at Venetian Parc clubhouse, Lennar Vice Chairman Stuart Miller

HOA buys clubhouse in southwest Miami-Dade from Lennar

From left: Alejandro Arias, Keren Marti, Avra Jain, Carolina Herrera, Luis Gonzalez, and Melissa Rose (Credit: Brett Hufziger Photography, Google Maps)

New frontier? Developers look to Hialeah

Stuart Miller and Southwest 152nd Avenue in Homestead

Lennar picks up land assemblage in Homestead

Screenshot of a promotional video for 10, 11 and 12 Star Island Drive with Alejandro Diaz Bazan and Stuart Miller

Stuart Miller sells Star Island lot for $17.5M

Lennar Corp. Executive Chairman Stuart Miller and an aerial view of 10350 Southwest 232nd Street (Credit: Google Maps)

Lennar buys 58 acres near Cutler Bay amid land buying spree

arrow_forward_ios