Martin Marietta To Buy Certain Aggregates Operations From Blue Water In $2.05 Bln Cash Deal

(RTTNews) - Martin Marietta Materials, Inc. (MLM) announced Monday its definitive agreement to acquire 20 active aggregates operations from affiliates of Blue Water Industries LLC for $2.05 billion in cash.

The agreement, entered on Sunday, is for operations in Alabama, South Carolina, South Florida, Tennessee, and Virginia. In addition, the company on Friday 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 $2.1 billion in cash.

The Blue Water deal is expected to close later this year, subject to regulatory approvals and other customary closing conditions. It will be financed with balance sheet cash.

According to the company, these portfolio optimizing transactions improve its product mix, margin profile and durability through cycles, and also provide balance sheet flexibility for future acquisitive and organic growth.

Martin Marietta said these deals, combined with the recent acquisition of Albert Frei & Sons, Inc. in Colorado, provide around 1 billion tons of proven, high-quality reserves and are expected to generate more than $180 million of annualized EBITDA.

In its statement, Blue Water, a privately-held, pure-play construction aggregates producer, said it will continue to operate its aggregates operations in North Carolina and central Florida, as well as its marine terminal business.

Ward Nye, Chairman, President and CEO 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 southeast region by allowing us to expand into new growth platforms in SOAR-specific target markets including Nashville and Miami."

Martin Marietta plans to reveal further details on these transactions as well as its full year results and overall 2024 outlook on February 14.