CRH has reached an agreement to acquire an attractive portfolio of cement and ready-mixed concrete assets in Texas, US from Martin Marietta Materials for US$2.1 billion.
The combined portfolio of assets is expected to generate pro-forma 2023 EBITDA of approximately US$170 million.
The Assets comprise a 2.1 million tonnes capacity cement plant located 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 1.6 million 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 optimize our existing footprint in Texas, resulting in significant synergies and self-supply opportunities.
“This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver 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.’
Ward Nye, chairman, president, and chief executive officer of Martin Marietta, said: “Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 objectives, we continually examine ways to optimize our portfolio and product mix through asset purchases, exchanges and/or divestitures.
“After thorough evaluation, we believe that monetizing these operations is in the company’s best interests to maximize near-, medium- and long-term stakeholder value. Consistent with our clearly articulated capital allocation priorities, we expect to use the transaction proceeds to advance our SOAR 2025 growth objectives, while continuing our long-standing track record of returning capital to shareholders.”
The proposed transaction is subject to regulatory approval and is expected to complete in the first half of 2024.