Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/268384
AGGREGATES MANAGER March 2014 10 With the acquisition of Texas Industries, Martin Marietta is poised to claim the top slot among U.S. aggregates producers. I f its $2.7 billion acquisition of Texas Industries goes through during the second quarter of this year as planned, Martin Marietta Materials Inc. may soon take the top spot as the nation's larg- est aggregates industry producer. The acquisition — the biggest in Martin Marietta's history — would result in a combined company with nearly 7,000 employees, net sales of $2.9 billion, ag- gregate reserves of 13.4 billion tons, and more than 400 quarries, distribution yards, ready-mix plants, and cement plants. Details of the deal were spelled out by Ward Nye, president and CEO of Martin Marietta; Anne Lloyd, executive vice president and CFO of Martin Marietta; and Mel Brekhus, president and CEO of Texas Industries during a Jan. 28 presenta- tion. "By uniting Martin Marietta's and Texas In- dustries' complementary assets and leveraging an expanded geographic footprint, we will be even better positioned to deliver value to our shareholders and customers," Nye said. "Texas Industries' aggregates operations are strategi- cally located in high-growth markets and fit well into our existing portfolio, and its cement operations will further diversify our product and customer mix." The combined company anticipates annual aggre- gate shipments of 143 million short tons — slightly more than Vulcan Materials Co.'s annual shipments of 141 million short tons. In a near-term 2014 out- look, the presentation predicts volume growth of 4 Top Round Pick by Therese Dunphy, Editor-in-Chief Following its acquisition of Texas Industries, the combined company anticipates aggregates volumes to increase by 4 to 5 percent and pricing to rise by 3 to 5 percent in 2014. The combined assets will result in a strong presence in many of the nation's high-growth markets, including Texas, Florida, and California. Source: Martin Marietta Materials