Sources: Martin Marietta Materials Inc., Raleigh, N.C.; CRH Plc, Dublin; CP staff
CRH Americas Materials will add more than 2 million tons and 1.5 million cubic yards of annual cement production capacity and ready mixed concrete volume under a Texas asset agreement with Martin Marietta Materials. The producers anticipate a Q1/Q2 2024 closing on the $2.1 billion deal, which spans Martin Marietta’s Hunter cement plant in New Braunfels, eastern Gulf Coast terminals, and 20 ready mixed plants serving Austin and San Antonio markets. The transaction bolsters CRH Americas Materials’ Ash Grove Cement and Texas Materials brands in the Lone Star State. It also sunsets much of the remaining Texas Industries Inc. assets Martin Marietta acquired in 2014 and has operated to great investor satisfaction since. TXI asset deals in 2015 and 2022 involved suitors CalPortland Co. (Oro Grande cement plant) and SRM Concrete LLC (central Texas ready mixed plants).
“Consistent with our Strategic Operating Analysis and Review 2025 objectives, we continually examine ways to optimize our portfolio and product mix through asset purchases, exchanges and/or divestitures,” says Martin Marietta Chairman Ward Nye. “After thorough evaluation, we believe that monetizing these operations is in the Company’s best interests to maximize near-, medium- and long-term stakeholder value. Consistent with our clearly articulated capital allocation priorities, we expect to use the transaction proceeds to advance our SOAR 2025 growth objectives, while continuing our long-standing track record of returning capital to shareholders.”
“The acquisition of these high-quality assets further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets,” adds CRH Plc Chief Executive Albert Manifold. “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. This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”