Aggregates Manager

March 2014

Aggregates Manager Digital Magazine

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MANAGEMENT 11 AGGREGATES MANAGER March 2014 to 5 percent and pricing growth of 3 to 5 percent. While Martin Marietta has long held aggregates, ready-mix, asphalt, and specialty product plants, the acquisition significantly increases its ready-mix market share in Texas (which boasts three of the nation's top 10 job growth markets) and establishes its presence in California, where cement consumption is expected to enjoy double-digit growth over the next several years. The addition of cement to Martin Mari- etta's portfolio of construction materials is significant. The presentation highlights that 18 U.S. cement facilities are forecast for closure due to an inability to meet regu- latory standards or because compliance in- vestment may not be financially justifiable. In addition, seven cement facilities have been closed since 2008 due to local cyclical demand and the expectation of increasingly stringent emissions standards. The result, the presentation notes, is an anticipated 19-percent decrease of current clinker ca- pacity in the U.S. market. "Through the significant investments Texas Industries has made in plant mod- ernization and capacity expansion, it has achieved leading positions in some of the nation's highest growth markets while maintaining a low-cost profile," Nye said. "As a result of this combination, we will be poised to capitalize on the strength of our combined aggregates platform, as well as the significant upside potential in the infra- structure, residential, and non-residential construction segments." As part of the acquisition, each Texas Industries share will be exchanged for 0.7 Martin Marietta share. The stock-for-stock, tax-free exchange includes a 15-percent premium to implied exchange ratio on Dec. 12, 2013, and a 13-percent premium to implied average exchange ratio during the 90 days prior to the announcement. Martin Marietta shareholders will hold 69 percent of combined venture, while Texas Industries shareholders will hold 31 percent. The agreement is subject to votes from shareholders of each company, as well as regulatory approvals and closing condi- tions. It is expected to close by the second quarter of 2014. "We are confident that we have found the right partner," Brekhus said. "This transaction will create a larger, stronger entity with enhanced career and professional development opportunities for employees. I look forward to working closely with Ward and the proven management teams of both companies to complete the transaction quickly and to ensure a smooth transition." AM 7H[W,1)2WRRUYLVLWZZZEHWWHUURDGVFRPLQIR call 800.544.2947 visit email A GLOBAL COMPANY Ź Custom designed to meet individual customer requirements Ź Fully automated system maintains consistent treatment application Ź Effective surfactant solutions available to suit application Ź Economical cleaner with a one-piece heavy duty frame Ź Spring Tensioner maintains cleaning pressure while minimiz- ing the need for adjustment Ź Features an easy one-pin blade change Martin ® Surfactant Dust System Martin ® SG Belt Cleaner solutions NEW Designed for the aggregate industry. $XWRPDWLFÀRZDGMXVWPHQWHOLPLQDWHV VXUIDFWDQWZDVWHDQGUHGXFHVFRVW reduce carryback suppress dust aggregate industry ® Registered trademark of Martin Engineering Company in the US and other select locations. © 2014 Martin Engineering Company. Additional information can be obtained at

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