Martin Marietta Materials Divests Materials Assets In Texas For $2.1B Cash

Building materials manufacturer Martin Marietta Materials, Inc MLM has entered into a definitive agreement to sell its South Texas cement business and related concrete operations to CRH Americas Materials, Inc., a subsidiary of CRH plc CRH, for $2.1 billion in cash.

The facilities to be divested include the Hunter cement plant in New Braunfels, related cement distribution terminals and 20 concrete plants serving the Austin and San Antonio region.  

The combined portfolio of assets is expected to generate pro-forma 2023 EBITDA of approximately $170 million.

"Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimize our existing footprint in Texas, resulting in significant synergies and self-supply opportunities," said CRH CEO Albert Manifold.

The transaction is expected to close in the first half of 2024, subject to regulatory approvals.

Martin Marietta expects to use the transaction proceeds to advance its SOAR 2025 growth objectives.

Price Action: MLM shares closed lower by 1.48% at $455.21 on Monday.

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