Lennar to Buy WCI Communities as Florida Recovery Continues
September 22 2016 - 8:00AM
Dow Jones News
Lennar Corp. will buy WCI Communities Inc. for $23.50 per share
in a move that combines two of the largest homebuilders in Florida
as the housing recovery continues.
The deal values WCI at about $643 million, a 37% premium over
WCI's closing share price Wednesday.
"WCI's land portfolio dovetails perfectly with our own Florida
footprint and expands our product offering to capture more of the
move-up market," Lennar Chief Executive Stuart Miller said.
The officer will be $11.75 in cash and $11.75 worth of Lennar
shares.
The deal is subject to approval by WCI stockholdders. A vote is
expected to occur in December or January.
Shares of WCI rose 37% in premarket trading to $23.50. Lennar
shares were inactive premarket.
In recent quarters, homebuilders have seen increases in average
price per home and in the number of homes delivered as the housing
market continues its recovery from the 2007 financial crisis.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 22, 2016 07:45 ET (11:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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