Martin Marietta Acquires Aggregate Operations, Expanding Southeast US Presence

Martin Marietta Materials, Inc. (NYSE: MLM), a leading American supplier of building materials, announced on Monday that it has successfully completed the acquisition of 20 aggregate operations from Blue Water Industries LLC (BWI Southeast) for a cash transaction of $2.05 billion. This acquisition, which took place on Sunday, is part of the company's strategic expansion in the Southeastern United States.

This move follows Martin Marietta's recent divestment on Friday, February 9, 2024, where it sold its South Texas cement and concrete operations to CRH Americas Materials, Inc. for $2.1 billion in cash. The transaction aligns with Martin Marietta's efforts to optimize its investment portfolio, focusing on an aggregate-based product strategy and improving its profit profile.

The newly acquired operations are spread across Alabama, South Carolina, South Florida, Tennessee, and Virginia, expected to complement Martin Marietta's existing footprint, especially in the growing markets of Nashville and Miami. The acquisition is anticipated to add approximately 1 billion tons of high-quality reserves and is expected to generate an annual EBITDA of over $180 million.

Ward Nye, Chairman, President, and CEO of Martin Marietta, emphasized that these transactions align with the company's SOAR (Strategic Operational Analysis and Review) 2025 strategy, aiming to solidify its position in the aggregates sector and provide a solid foundation for both acquisition and organic growth.

The acquisition of BWI Southeast's operations will be funded through the company's balance sheet cash and is expected to close by the end of the year, subject to regulatory approvals and customary closing conditions. Martin Marietta is a leading supplier of aggregates and heavy building materials, with operations across 28 states, Canada, and the Bahamas, also known for its Magnesia Specialties business, producing magnesium and dolomitic lime products.

Details of these transactions, as well as Martin Marietta's full-year results and 2024 outlook, will be shared during the company's Q4 and full-year 2023 earnings call on Wednesday, February 14, 2024.

Source:
Investing.com Vietnam