Martin Marietta Announces Acquisition of Lehigh Hanson’s West Region Business
May 24 2021 - 2:00AM
Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or
the “Company”) today announced that it has entered into a
definitive agreement under which Martin Marietta will acquire
Lehigh Hanson, Inc.’s West Region business (“Lehigh West Region”)
for $2.3 billion in cash.
Lehigh West Region provides the Company with a
new upstream materials-led growth platform across several of the
nation’s largest and fastest growing megaregions in California and
Arizona. The acquisition, which is consistent with and advances the
Company’s SOAR (Strategic Operating Analysis and Review) 2025 plan,
includes 17 active aggregates quarries, two cement plants with
related distribution terminals, and targeted downstream operations.
Following the closing, Martin Marietta will have a coast-to-coast
geographic footprint with expanded product offerings.
Ward Nye, Chairman, President and CEO of Martin
Marietta, stated, “We continue to successfully execute on our
strategic initiatives to enhance our footprint and responsibly
expand our business. Lehigh’s West Region has leading positions in
some of the nation’s most attractive markets, providing Martin
Marietta with access to new geographies for continued
industry-leading growth. With this acquisition, our Company will be
well-positioned to capitalize on long-term demand drivers from
increased state infrastructure investment in California and Arizona
as well as continued private-sector growth across these regions. We
are confident in our ability to quickly realize the benefits of
this transaction following the same proven approach we took with
our acquisitions of TXI and Bluegrass. Those purchases delivered
significant value creation as will the addition of the Lehigh West
Region as Martin Marietta SOARs to a Sustainable
Future.”
Martin Marietta expects the transaction to close
in the second half of 2021, subject to regulatory approvals and
other customary closing conditions, and to be accretive to earnings
per share in the first full year following closing.
The Company has posted supplemental information
related to the transaction on the Investor
Relations section of its website.
About Martin Marietta
Martin Marietta, a member of the S&P 500
Index, is an American-based company and a leading supplier of
building materials, including aggregates, cement, ready mixed
concrete and asphalt. Through a network of operations spanning 26
states, Canada and The Bahamas, dedicated Martin Marietta teams
supply the resources for building the solid foundations on which
our communities thrive. Martin Marietta’s Magnesia Specialties
business produces high-purity magnesia and dolomitic lime products
used worldwide in environmental, industrial, agricultural and
specialty applications. For more information, visit
www.martinmarietta.com or www.magnesiaspecialties.com.
About Lehigh Hanson, Inc.
Lehigh Hanson, Inc. and its affiliated companies
are part of the HeidelbergCement Group, one of the largest building
materials manufacturers worldwide.
Forward Looking Statements
This release contains statements which
constitute forward-looking statements within the meaning of federal
securities law. Statements and assumptions on future revenues,
income and cash flows, performance, economic trends, the outcome of
litigation, regulatory compliance and environmental remediation
cost estimates are examples of forward-looking statements. Numerous
factors could affect our forward-looking statements and actual
performance.
Investors are cautioned that all forward-looking
statements involve risks and uncertainties, and are based on
assumptions that we believe in good faith are reasonable at the
time the statements are made, but which may be materially different
from actual results. Investors can identify these statements by the
fact that they do not relate only to historic or current facts. The
words “may”, “will”, “could”, “should”, “anticipate”, “believe”,
“estimate”, “expect”, “forecast”, “intend”, “outlook”, “plan”,
“project”, “scheduled” and other words of similar meaning in
connection with future events or future operating or financial
performance are intended to identify forward-looking statements.
Any or all of Martin Marietta’s forward-looking statements in this
release and in other publications may turn out to be wrong.
You should consider these forward-looking
statements in light of risk factors discussed in our Annual Report
on Form 10-K for the year ended December 31, 2020 and other
periodic filings made with the SEC. All of our forward-looking
statements should be considered in light of these factors. In
addition, other risks and uncertainties not presently known to us
or that we consider immaterial could affect the accuracy of our
forward-looking statements, or adversely affect or be material to
the Company. Except as required by law, the Company undertakes no
obligation to update any forward-looking statements in order to
reflect any event or circumstance that may arise after the date of
this release.
Investor Contact: Suzanne
OsbergVice President, Investor Relations (919)
783-4691Suzanne.Osberg@martinmarietta.com
MLM-G
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