Acquisition of BWI aggregates operations; completion of South Texas cement and concrete divestiture
MARTIN Marietta Materials Inc. have entered into a definitive agreement to acquire 20 active aggregates operations in Alabama, South Carolina, South Florida, Tennessee, and Virginia from affiliates of Blue Water Industries LLC (BWI Southeast) for US$2.05 billion in cash.
Additionally, on 9 February 2024, the company completed its previously announced divesture of its South Texas cement and related concrete operations to CRH Americas Materials Inc., a subsidiary of CRH plc, for US$2.1 billion in cash.
Martin Marietta say that, together, these portfolio optimizing transactions will not only improve the company’s product mix, margin profile, and durability through cycles, but also provide balance sheet flexibility for future acquisitive and organic growth.
Ward Nye, chairman, president, and chief executive officer of Martin Marietta said: ‘These transactions are wholly consistent with the company’s SOAR (Strategic Operating Analysis and Review) 2025 aggregates-led product strategy.
‘Importantly, the BWI Southeast acquisition complements Martin Marietta’s existing geographic footprint in the dynamic south-east region by allowing us to expand into new growth platforms in SOAR-specific target markets, including Nashville and Miami.
‘Combined with the recent acquisition of Albert Frei & Sons Inc, in Colorado, these two pure-play aggregates transactions provide approximately 1 billion tonnes of proven, high-quality reserves and are expected to generate more than US$180 million of annualized EBITDA.’
The BWI Southeast transaction will be financed with balance sheet cash and is expected to close later this year, subject to regulatory approvals and other customary closing conditions.