Martin Marietta completes $3.3 billion acquisition of Texas Industries
When announced in January, the deal was valued at $2.7 billion. But the report notes that Martin Marietta’s stock is up 25 percent since then, putting the final value at around $3.3 billion.
The acquisition was approved earlier this week by shareholders of both companies. As part of an agreement with the U.S. Department of Justice (DOJ) to resolve competition issues, Martin Marietta was required to sell its North Troy aggregates quarry in Oklahoma and two rail yards in Texas.
“I look forward to continuing to work closely with our team and all of our employees, including our new team members from TXI, to ensure a seamless transition as we continue to deliver superior product offerings and service to customers,” Martin Marietta CEO Ward Nye said in a prepared statement.
The merger adds cement to Martin Marietta’s portfolio and increases the company’s aggregates production, likely making Martin Marietta the largest aggregate and heavy building material producer.
According to The Dallas Morning News, the deal is expected to boost the company’s pre-tax synergies by about $70 million by 2017.