Martin Marietta announced that on Feb. 11, it entered into a definitive agreement to acquire 20 active aggregates operations in Alabama, South Carolina, South Florida, Tennessee and Virginia from affiliates of Blue Water Industries LLC (BWI Southeast) for $2.05 billion in cash.
Additionally, on Feb. 9, the company completed its previously announced divesture of its South Texas cement and related concrete operations to CRH Americas Materials Inc., a subsidiary of CRH plc, for $2.1 billion in cash.
Together, these portfolio optimizing transactions not only improve the company’s product mix, margin profile and durability through cycles, but also provide balance sheet flexibility for future acquisitive and organic growth.
Ward Nye, chairman, president and CEO of Martin Marietta, stated, “These transactions are wholly consistent with the company’s SOAR (Strategic Operating Analysis and Review) 2025 aggregates-led product strategy. Importantly, the BWI Southeast acquisition complements Martin Marietta’s existing geographic footprint in the dynamic southeast region by allowing us to expand into new growth platforms in SOAR-specific target markets including Nashville and Miami.
“Combined with the recent acquisition of Albert Frei & Sons, Inc. in Colorado, these two pure-play aggregates transactions provide approximately 1 billion tons of proven, high-quality reserves and are expected to generate more than $180 million of annualized EBITDA,” Nye concluded.
The BWI Southeast transaction will be financed with balance sheet cash and is expected to close later this year, subject to regulatory approvals and other customary closing conditions.