Transaction set to strengthen aggregates-led position in strategic high-growth regions
MARTIN Marietta Materials Inc. have successfully completed their previously announced acquisition of Bluegrass Materials Company, the largest privately held, pure-play aggregates company in the US, for $1.625 billion in cash.
The transaction provides a portfolio of more than 125 years of strategically located, high-quality reserves across Georgia, South Carolina, Maryland, Kentucky and Tennessee.
Ward Nye, chairman, president and chief executive officer of Martin Marietta, said: ‘We are pleased to complete the Bluegrass acquisition and welcome a talented group of new employees to the Martin Marietta team.
‘The acquisition, wholly consistent with our long-term strategic growth plan, enhances our aggregates-led position in high-growth south-eastern and Mid-Atlantic regions, and expands our product offerings to both new and existing customers.
‘Bluegrass’ strategic assets and impressive cost profile, combined with the depth and excellence of their personnel, strengthen our ability to deliver significant value for shareholders, customers and employees.’
To resolve all competition issues with respect to the acquisition, Martin Marietta have divested their Forsyth aggregates quarry north of Atlanta, Georgia, and will divest Bluegrass’ Beaver Creek aggregates quarry in western Maryland.
Integration of the acquired business is under way and proceeding as planned, and Martin Marietta say they expect to realize annual synergies of approximately US$15 million within 12 months of the transaction’s completion date (27 April 2018).
Excluding acquisition-related expenses, the acquisition is also expected to be accretive to earnings per share and cash flow within the first full year of ownership.