Martin Marietta will significantly boost its West Coast presence in a $2.3 billion cash deal for the bulk of Lehigh Hanson’s West Region operations in Arizona, California, Nevada and Oregon. The acquisition provides the company with a new upstream materials-led growth platform across several of the nation’s largest and fastest growing megaregions.
The deal, which is consistent with and advances Martin Marietta’s SOAR (Strategic Operating Analysis and Review) 2025 plan, includes 17 active aggregates quarries, the Lehigh Cement Redding and Tehachapi, Calif., cement plants with related distribution terminals, and targeted downstream operations.
“Lehigh West has leading positions in some of the nation’s most attractive markets, providing access to new geographies for continued industry-leading growth,” said Martin Marietta Chairman Ward Nye. “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 [2014] and Bluegrass Materials [2018].”
As Martin Marietta sets its sights on a coast-to-coast U.S. presence, Lehigh Hanson parent company HeidelbergCement is narrowing its North American market scope. “The sale is a major step in portfolio optimization as part of our ‘Beyond 2020’ strategy,” explained HeidelbergCement Chairman Dr. Dominik von Achten. “We are simplifying our portfolio in North America and prioritizing on the strongest market positions.”
Chris Ward, president and CEO of Lehigh Hanson, reiterated HeidelbergCement’s high commitment for future growth in North America. “We will accelerate the build-out of our positions in the four key regions Canada, Midwest, Northeast and South through selected bolt-on acquisitions and capacity expansion projects in the future.”
The companies expect the transaction to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions.
