Lennar To Acquire WCI Communities In Cash & Stock Deal
(RTTNews.com) - Lennar Corp. (LEN, LEN.B) Thursday announced a definitive agreement to acquire WCI Communities, Inc. ( WCIC ) in a cash and stock transaction valued at $23.50 per WCI share. 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.
The transaction gives WCI a total equity value of approximately $643 million and an enterprise value of $809 million.
The transaction will be in the form of a merger of WCI and a newly formed Lennar subsidiary. As per the plan WCI and a newly formed Lennar subsidiary will merge and the consideration for each WCI share will be $11.75 in cash and a fraction of a share of Lennar Class A common stock with a value of $11.75.
In the latest 12 months ended June 30, 2016, WCI delivered 1,118 homes with an average sales price of approximately $444,000. The transaction will include a portfolio of owned and controlled land totaling approximately 14,200 homesites, located in most of the highest growth and largest coastal Florida markets.
, chief executive officer of Lennar, said "WCI's land portfolio dovetails perfectly with our own Florida footprint and expands our product offering to capture more of the move-up market. Our combined presence in the premier coastal Florida markets will drive growth and allow significant cross and dual brand marketing opportunities."
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