Previously Bankrupt Luxury Home Builder in Florida Sells for $643 Million

by San Antonio Attorney

Lennar Corp., a major construction company in Miami, paid $643 million to acquire high-end developer and homebuilder WCI Communities.

Lennar, one of the top homebuilders in the United States, had an income of $9.74 billion last year.  On the other hand, WCI’s income last year was $563 million— the continuation of a remarkable recuperation that started in 2012, when it generated $241 million. In 2008, WCI declared bankruptcy when its liabilities reached about half of its assets. About $2 billion of WCI’s debt was eliminated and the company left bankruptcy after two years. WCI brought in $19 million in June 2013 through IPO. From 2014 to 2015, the company was doing really well causing speculations of an acquisition to arise, though it was denied by the company CEO and President Keith Bass.

The deal between Lennar and WCI includes a number of WCI lands that have 14,200 residential sites, situated largely on the coasts of Florida. WCI built 1,118 residential homes priced at about $444,000 in the twelve months until June 30, according to an official statement. The business started as a caterer for second-home purchasers.

Bass said in a statement that homeowners and homebuyers of WCI Communities will not be affected by the acquisition of the company.

However, the deal has an important condition: WCI reserves the right to accommodate a more profitable offer.  The company has 35 days to find or enter into talks with parties that propose different offer, according to Bass’ statement. It is still uncertain that this route will bring about a greater offer.

Within the 35-day period, shareholders of WCI are slated to vote on the agreement as early as December, and then acquisition is subject to standard closing terms.

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