Martin Marietta Materials Divests Materials Assets In Texas For $2.1B Cash
Portfolio Pulse from Shivani Kumaresan
Martin Marietta Materials, Inc (MLM) has agreed to sell its South Texas cement business and related operations to CRH Americas Materials, Inc, a subsidiary of CRH plc (CRH), for $2.1 billion in cash. The divested assets, which include the Hunter cement plant and 20 concrete plants, are expected to generate a pro-forma 2023 EBITDA of about $170 million. The deal is anticipated to close in the first half of 2024, pending regulatory approvals. MLM plans to use the proceeds to further its SOAR 2025 growth objectives. MLM's stock closed down 1.48% at $455.21 on Monday.
November 21, 2023 | 11:41 am
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CRH plc's subsidiary is acquiring Martin Marietta's South Texas cement business and related operations for $2.1 billion, expected to close in H1 2024.
CRH's acquisition of MLM's assets for $2.1 billion is a strategic expansion move. The expected EBITDA of $170 million from these assets in 2023 suggests a positive financial impact. The deal is subject to regulatory approval, and the anticipation of synergies could be seen as a positive by investors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Martin Marietta Materials, Inc has sold its South Texas cement business to CRH for $2.1 billion, planning to use the proceeds for its SOAR 2025 growth objectives.
The divestiture of assets for $2.1 billion in cash is a significant transaction for MLM, which is likely to be viewed positively by investors as it provides capital to advance growth objectives. However, the short-term stock price reaction was negative, possibly due to concerns over the loss of revenue-generating assets.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90