Lennar to acquire WCI Communities for $643M

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
Lennar's Stuart Miller, Rick Beckwitt  with the site (Google Maps; Lennar)
Lennar pays $8M for South Miami-Dade housing community site
Lennar pays $8M for South Miami-Dade housing community site
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Lennar's Stuart Miller and 28600 Southwest 132nd Avenue (Google Maps)
Lennar spends $29M on Homestead mobile home park, plans new community
Lennar spends $29M on Homestead mobile home park, plans new community
From left: Lisa Ferrazza, Joe Cerri, Frank Longo, Bob Kramer, and Daniel Abou-Jaoude
Movers & Shakers: Lennar names new co-CEO & more
Movers & Shakers: Lennar names new co-CEO & more
Stuart Miller of Lennar & a map of Arden community
Lennar pays $14M for land at Arden
Lennar pays $14M for land at Arden
From left: Jorge Pérez, Stuart Miller, Craig Robins, Louise Sunshine, and Russell Galbut,(Credit: Patrick McMullan via Getty Images)
Here are the South Florida real estate players who donated to candidates in 2020
Here are the South Florida real estate players who donated to candidates in 2020
Stuart Miller & Mike Nunziata, with a rendering of Avalon Trials (Credit: Lennar Homes)
Lennar spends $28M for lots on former golf course in Delray Beach
Lennar spends $28M for lots on former golf course in Delray Beach
Stuart Miller, Ken Griffin and 11 and 12 Star Island Drive (Credit: Google Maps)
Billionaire hedge funder Ken Griffin pays $37M for Star Island property
Billionaire hedge funder Ken Griffin pays $37M for Star Island property
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...