Martin Marietta has completed the acquisition of Texas Industries, Inc. (TXI). The transaction was approved by shareholders of both groups during meetings held on 30 June 2014.
The purchase will strengthen Martin Marietta’s market position in one of the fastest growing areas of the US. The combined company has a market capitalisation of around US$8.8 billion, according to the closing price of stock on 1 July. The group is set to be a leading supplier of aggregates and heavy building materials, with a portfolio of cement and ready-mix concrete assets, as well as a best in class long-haul transportation network.
The combination is forecast to generate annual pre-tax synergies of approximately US$70 million by 2017. Select vertical integration is also expected to lower transportation and distribution costs whilst enhancing efficiency.
“We are excited to move forward as one company that is even better positioned to deliver increased value to shareholders, customers and employees. Uniting our complementary assets and leveraging our expanded geographic footprint provides Martin Marietta with an expanded platform for growth. In particular, Martin Marietta will benefit from greater exposure to the expanding cement markets in Texas and California – two of the largest and fastest growing markets for construction materials in the United States. I look forward to continuing to work closely with our team and all of our employees, including our new team members from TXI, to ensure a seamless transition as we continue to deliver superior product offerings and service to customers,” said Ward Nye, Martin Marietta's Chairman, President and Chief Executive Officer.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/16072014/martin_marietta_completes_txi_acquisition_102/