Lennar Corp. agreed to buy WCI Communities Inc.in a deal that values the Florida real estate company at about $643 million. The deal represents 37 percent premium to WCI’s closing stock price on September 21.The transaction will combine two of the largest homebuilders in Florida. “WCI Communities homebuyers and homeowners can expect a smooth transition and the continuation of the top-tier service they have come to expect from WCI”. With a legacy that spans more than 60 years, WCI has established a leading expertise in developing amenity rich, lifestyle master planned communities catering to move-up, active adult and second-home buyers. “WCI’s land portfolio dovetails perfectly with our own Florida footprint and expands our product offering to capture more of the move-up market”, said Lennar CHief Executive Stuart Miller.
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Under the terms of the agreement, Lennar will pay $23.50 in cash and stock for each WCI share outstanding.
Bass said the offer “represents immediate and attractive value” for WCI’s stockholders.
WCI said the merger agreement gave it 35 days to shop for a higher offer. The transaction is structured in a manner meant to cause the receipt of Lennar stock as a result of the merger not to be a taxable event for WCI stockholders. The Company will not disclose developments with respect to the solicitation process unless and until the Board has made a decision with respect to any potential superior proposal.
The companies expect the deal to close following a vote by WCI shareholders in December 2016 or January 2017. Visit MarketWatch.com for more information on this news.
The WCI line-which includes single-family, condo, and high-rise for-sale communities, is also a powerful learning tool to understand retirees and soon-to-be retirees’ preferences, values, and demands in homes and communities.
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WCI, based in Bonita Springs, Fla., is known for its building of “second homes” for adult buyers.
