Lennar, the nation’s second-largest homebuilder, announced a $643 million purchase of WCI Communities Inc., a luxury homebuilder in Florida.
Reuters reports that the transaction allows Lennar to expand further into the move-up market. Lennar mainly caters to buyers who desire a second home.
Lennar's offer of $23.50 per share – half in cash and half in stock – represents a premium of about 37 percent to WCI's Wednesday close. WCI shares rose to $23.50 premarket on Thursday. ... The transaction, which would be in the form of a merger between WCI and a newly formed Lennar unit, gives WCI an enterprise value of $809 million, Lennar said.
