Martin Marietta Makes Splash In Southeast, $2.05B Acquisition Boosts Aggregates Business

Martin Marietta Materials Inc MLM disclosed a deal to acquire 20 active operations in Alabama, South Carolina, South Florida, Tennessee, and Virginia from affiliates of Blue Water Industries LLC (BWI Southeast) for $2.05 billion in cash. 

On February 9, 2024, the company completed its previously disclosed divestiture of its South Texas cement and related concrete operations to CRH Americas Materials, Inc., a subsidiary of CRH PLC CRH, for $2.1 billion in cash.

Ward Nye, Chairman, President and CEO said, “Importantly, the BWI Southeast acquisition complements Martin Marietta’s existing geographic footprint in the dynamic southeast region by allowing us to expand into new growth platforms in SOAR-specific target markets including Nashville and Miami.”

“Combined with the recent acquisition of Albert Frei & Sons, Inc. in Colorado, these two pure-play aggregates transactions provide approximately 1 billion tons of proven, high-quality reserves and are expected to generate more than $180 million of annualized EBITDA.”

The company plans to finance the BWI Southeast transaction through cash, which is projected to close later this year, subject to regulatory approvals and other customary closing conditions.

As of September 30, 2023, the company had unrestricted cash and cash equivalents of $647.6 million and unused borrowing capacity on its existing credit facilities of $1.20 billion.

Martin Marietta will report on the fourth-quarter and full-year 2023 results on February 14, 2024.

Price Action: MLM shares are trading higher by 1.34% at $534.23 on the last check Monday.