WCI Communities (WCIC) to Be Acquired by Lennar Corp. in $643M Transaction
Shares of WCI Communities (WCIC) were trading up +6.19 or +36.07 percent to $23.35 per share in Thursday’s premarket after news early this morning that the company would be taken over by Lennar Corp. The deal will be for a combination of cash and stock. WCI Communities Inc. stock closed at $17.16 per share, up +0.07 or +0.41 percent in Wednesday’s regular trading session.
Originally known as Westinghouse Communities Inc., the home building division of the Westinghouse Electric Company, WCI Communities is a Bonita Springs, Florida home builder.
Founded in 1954, Miami, Florida based Lennar Corporation is one of the nation’s largest homebuilders and the second largest by number of homes sold with a market value of $6.7 billion.
The deal which was announced early this morning, will have Lennar Corp. pay $23.50 per share for WCI’s outstanding shares in a combination of cash and stock. The transaction will unite two of Florida’s largest home builders and represents a +37 percent premium over WCI’s closing price on Wednesday.
The transaction will be in the form of a merger of WCI with a newly formed subsidiary of Lennar. The plan calls for the newly formed subsidiary to merge with WCI after paying cash consideration of $11.75 with the remaining amount in the form of a fraction of a share of Lennar Class A common stock with a value of $11.75. The total equity value of the transaction comes to approximately $643 million and a total enterprise value of $809 million.
Keith Bass, President and Chief Executive Officer of WCI Communities, stated in this morning’s press release that, “The transaction is a tribute to the legacy and quality of the WCI brand, the attractiveness of our homes and communities, and the talent of our team members. Lennar is one of the country’s finest homebuilders and we are pleased that this transaction provides our shareholders with immediate and attractive value.”
WCI delivered 1,118 homes over the last twelve months with an average sale price of $444,000. The deal will include WCI’s real estate portfolio, which owns or controls about 14,200 home sites in some of Florida’s most exclusive coastal real estate markets.
Lennar Chief Executive, Stuart Miller commented that, “Our combined presence in the premier coastal Florida markets will drive growth and allow significant cross and dual brand marketing opportunities.” Investors are reacting positively to the deal, with Lennar shares up +2.42 percent to $44.50 in this morning’s premarket, while WCI shares are trading just a fraction below the $23.50 offered for the company.
Other News About WCIC
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WCI Communities, Inc. – Value Analysis (NYSE:WCIC) : September 19, 2016
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