Martin Marietta Materials, Inc. Acquires Georgia and Tennessee Aggregate Operations
April 14 2008 - 9:24AM
Business Wire
Martin Marietta Materials, Inc. (NYSE:MLM), today announced the
acquisition of six quarry locations in Georgia and Tennessee from
Vulcan Materials Company. Subject to normal closing adjustments
related to working capital, the cash and asset exchange transaction
was completed as part of the Department of Justice�s Consent Order
requiring Vulcan to divest of certain facilities following its
acquisition of Florida Rock Industries, Inc. Of the six locations
acquired by Martin Marietta Materials, the five Georgia sites
comprise three active and one greenfield granite operation located
near Atlanta in Paulding, Fayette, Fulton, and Butts Counties,
respectively, as well as a limestone operation in Floyd County near
Rome. The sixth location is a limestone operation in Chattanooga,
Tennessee. As part of the transaction Martin Marietta Materials
also acquired a land parcel previously leased from Vulcan at Martin
Marietta Materials� Three Rivers Quarry near Paducah, Kentucky. For
the 12 months ended December 31, 2007, the newly acquired Martin
Marietta Materials locations shipped nearly 4.5 million tons of
aggregates. Aggregate reserves exceed 300 million tons. In addition
to a $192 million cash payment, Martin Marietta Materials divested
to Vulcan its only California quarry located in Oroville, an idle
facility north of San Antonio, Texas, and land in Henderson, North
Carolina, formerly leased to Vulcan. These newly acquired
facilities significantly expand the presence of Martin Marietta
Materials in high-growth areas of Georgia and Tennessee,
particularly south and west of Atlanta. These quarries will be
integrated into Martin Marietta Materials� Southeast Group. As a
result of this transaction, Martin Marietta Materials aggregates
production in Georgia and Tennessee will increase by nearly 30%
annually. Ward Nye, President and COO of Martin Marietta Materials,
noted: �These multiple acquisitions represent a rare and valuable
opportunity in the greater Atlanta metropolitan and Chattanooga
markets. These are areas we know well and in which our organization
has experienced and successful personnel with a history of
delivering solid results. We also look forward to working with our
new employees in the realization of the many opportunities this
transaction brings.� Martin Marietta Materials is a leading
producer of construction aggregates and a producer of
magnesia-based chemical and dolomitic lime. For more information
about Martin Marietta Materials, refer to our Web site at
www.martinmarietta.com. Investors are cautioned that all statements
in this Press Release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Corporation
believes in good faith are reasonable but which may be materially
different from actual results. Factors that the Corporation
currently believes could cause actual results to differ materially
from the forward-looking statements in this press release include,
but are not limited to business and economic conditions and trends
in the markets the Company serves; the level and timing of federal
and state transportation funding; levels of construction spending
in the markets the Company serves; unfavorable weather conditions;
ability to recognize quantifiable savings from internal expansion
projects; ability to successfully integrate acquisitions quickly
and in a cost-effective manner; fuel costs; transportation costs;
competition from new or existing competitors; and other risk
factors listed from time to time found in the Corporation�s filings
with the Securities and Exchange Commission. The Corporation
assumes no obligation to update any such forward-looking
statements. MLM-G
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