Martin Marietta and Texas Industries to merge
By Chris Sleight28 January 2014
Martin Marietta Materials and Texas Industries have announced that they are to merge in an all-share deal. The transaction would create an aggregates and cement company with annual sales of some US$ 2.3 billion, with a footprint in 36 US states, Canada, and the Caribbean.
The deal would see Texas Industries share holders receive 0.7 Martin Mariette shares for each Texas Industries share they own. The two companies say the new entity would have an enterprise value of US$ 8.5 billion. Total assets would include 400 quarries and distribution plants and the new company would have some 13.5 billion tonnes of aggregates reserves.
Both companies’ boards have recommended the deal to their shareholders. Martin Mariette president and CEO Ward Nye said, “By uniting Martin Marietta and Texas Industries complementary assets and leveraging an expanded geographic footprint, we will be even better positioned to deliver value to our shareholders and customers. Texas Industries aggregates operations are strategically located and fit well into our existing portfolio, and its cement operations will further diversify our product and customer mix.”
Texas Industries’ president and CEO Mel Brekhus added, “Combining with Martin Marietta represents a unique opportunity to create a more competitive company with a solid, diversified portfolio of assets, enhanced credit profile and a strong balance sheet.”
The companies added that the merger was expected to generate US$ 70 million in annual savings by 2017.