Martin Marietta made an agreement to sell its south Texas cement business and some related ready-mixed concrete operations to CRH Americas Materials.
According to the companies, the deal is worth $2.1 billion.
The assets involved include the Hunter cement plant in New Braunfels, a network of cement terminals along the eastern Gulf Coast of Texas, and 20 ready-mix plants that serve the Austin and San Antonio markets.
“The acquisition of these high-quality assets further strengthens our market-leading position in Texas and increases our exposure to attractive, high-growth markets,” says Albert Manifold, chief executive at CRH. “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.”
Ward Nye, chairman, president and CEO of Martin Marietta, also commented on the deal.
“Consistent with our SOAR (Strategic Operating Analysis & Review) 2025 objectives, we continually examine ways to optimize our portfolio and product mix through asset purchases, exchanges and/or divestitures,” Nye says. “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.”
Martin Marietta and CRH expect the deal to be completed in the first half of 2024.
“This transaction reflects our disciplined approach to capital allocation, as well as our commitment to deliver further growth and value creation for our shareholders,” Manifold says. “We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”
