CRH has agreed to pay US$2.1bn for a portfolio of Martin Marietta Materials' Texas, USA, cement and ready-mixed concrete assets.
The combined portfolio of assets is expected to generate pro-forma 2023 EBITDA of around $170 million.
The assets comprise a 2.1mt capacity cement plant between San Antonio and Austin, a network of terminals along the Eastern Gulf Coast of Texas and a portfolio of 20 ready-mixed concrete plants with annual shipments of c.1.6m cubic yards serving the Austin and San Antonio markets.
Albert Manifold, Chief Executive of CRH, said: “The acquisition of these high-quality assets further strengthens our market-leading position in Texas and increases our exposure to attractive, high-growth markets. Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimise our existing footprint in Texas, resulting in significant synergies and self-supply opportunities. This transaction reflects our disciplined approach to capital allocation and our commitment to further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market”.
The proposed transaction is subject to regulatory approval and is expected to complete in H1 2024.
