Martin Marietta Materials entered into a definitive agreement to sell its South Texas cement business and certain related concrete operations to CRH Americas Materials, a subsidiary of CRH plc, for $2.1 billion in cash.
The facilities to be divested include the Hunter cement plant in New Braunfels, related cement distribution terminals and 20 concrete plants serving the Austin and San Antonio region.
“Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 objectives, we continually examine ways to optimize our portfolio and product mix through asset purchases, exchanges and/or divestitures. After thorough evaluation, we believe that monetizing these operations is in the company’s best interests to maximize near-, medium- and long-term stakeholder value,” said Ward Nye, chairman, president and CEO of Martin Marietta.
“Consistent with our clearly articulated capital allocation priorities, we expect to use the transaction proceeds to advance our SOAR 2025 growth objectives, while continuing our long-standing track record of returning capital to shareholders,” he concluded.
The transaction is expected to close in the first half of 2024, subject to regulatory approvals and other customary closing conditions.
