Martin Marietta Materials has entered into a definitive agreement to sell its Redding, Calif., cement plant and related cement distribution terminals to CalPortland for $250 million in cash. The deal also includes 14 ready mixed concrete plants in California.
Calportland’s parent company Taiheiyo Cement said the acquisition will enable CalPortland to build a supply system that can meet the growing demand for cement in northern California, Oregon and Nevada. It will also strengthen CalPortland’s ready mixed business in California, the second largest market in the U.S., and secure reliable sales channels for its cement business.
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, Calif., cement plant and related cement distribution terminals. However, there is no assurance that an agreement will be made.
Martin Marietta acquired both the Redding and Tehachapi plants from Lehigh Hanson in October 2021.