LEN will pay $23.50 per share for WCIC, with the transaction taking place via a merger of WCIC and a newly-formed Lennar subsidiary. That takeover price represents a 37% premium over WCI Communities’ Wednesday closing price of $17.16, and applies an equity value to WCIC of $643 million and an enterprise value of $809 million.
Lennar and WCI Communities commented via press release:
Stuart Miller, Chief Executive Officer of Lennar, said “We welcome the WCI team to the Lennar family. We have long respected the WCI brand and what the company has accomplished. 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.”
Keith Bass, President and Chief Executive Officer of WCI, said “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.”
Lennar shares were inactive in premarket trading following the announcement. Year-to-date, LEN has fallen 11.116%, despite seemingly positive earnings results reported earlier this week.