Martin Marietta blazes Pacific trail in Lehigh Hanson West deal

Sources: Martin Marietta Materials, Raleigh, N.C.; HeidelbergCement AG, Germany; CP staff

Martin Marietta will significantly boost its West Coast presence in a $2.3 billion cash deal for the bulk of Lehigh Hanson West Region operations in Arizona, California, Nevada and Oregon. Anchoring the asset package are the Lehigh Cement Redding and Tehachapi, Calif. plants, with combined annual capacity upward of 1.6 million tons, plus seven terminals; 17 active crushed stone or sand & gravel sites; and, 29 ready mixed concrete plants. The deal does not include the Hanson Permanente Cement mill in Cupertino, Calif. or Oregon sites under Lehigh Hanson’s Seattle-based Cadman Inc. business. 

“Lehigh West has leading positions in some of the nation’s most attractive markets, providing access to new geographies for continued industry-leading growth,” says Martin Marietta Chairman Ward Nye. “Our company will be well-positioned to capitalize on long-term demand drivers from increased state infrastructure investment in California and Arizona as well as continued private-sector growth across these regions. We are confident in our ability to quickly realize the benefits of this transaction following the same proven approach we took with our acquisitions of TXI [2014] and Bluegrass Materials [2018].” 

As Martin Marietta sets its sights on a coast-to-coast U.S. presence, Lehigh Hanson parent company HeidelbergCement AG is narrowing its North American market scope. “The sale is a major step in portfolio optimization as part of our ‘Beyond 2020’ strategy,” explains HeidelbergCement Chairman Dr. Dominik von Achten. “We are simplifying our portfolio in North America and prioritizing on the strongest market positions.” 

“We will accelerate build-out in four key regions, Canada, Midwest, Northeast and South, through selected bolt-on acquisitions and capacity expansion projects,” adds Lehigh Hanson CEO Chris Ward. 

The parties project closing of the transaction in the second half of 2021. 

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