Company selling certain West Coast cement and ready-mixed concrete operations to CalPortland
MARTIN Marietta Materials Inc. have entered into a definitive agreement to sell certain West Coast cement and ready-mixed concrete operations to CalPortland Co. for US$250 million in cash. The operations include the Redding cement plant, related cement distribution terminals, and 14 ready-mixed concrete plants in California.
Ward Nye, chairman, president, and chief executive officer of Martin Marietta, said: ‘Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 plan, we continually look for ways to optimize our portfolio and product mix through asset swaps and divestitures. After thoughtful evaluation, we determined that monetization of these operations is the best avenue to maximize value for all stakeholders.’
Based in Glendora, California, and operating across the western US and two Canadian provinces, CalPortland Co. are major producers of aggregates, cement, ready-mixed concrete, concrete products, and asphalt.
The transaction is expected to close in the second half of 2022, subject to regulatory approvals and other customary closing conditions. The parties have also entered into preferred arrangements regarding the potential sale of Martin Marietta’s Tehachapi cement plant and related cement distribution terminals, though there is no assurance that an agreement will be entered into.