Martin Marietta Materials, Inc. Acquires Aggregate Operations from CEMEX
June 15 2009 - 8:55AM
Business Wire
Martin Marietta Materials, Inc. (NYSE:MLM), announced today that
it has acquired three quarries plus the remaining 49% interest in
an existing joint venture from CEMEX, Inc. The purchase price for
the assets of the three quarries plus the 49% interest was $65
million. Based on 2008 results without synergies, this equates to a
multiple of 6.8 times EBITDA. Estimated mineral reserves are 255
million tons.
The quarry operations are located at Fort Calhoun, Nebraska;
Guernsey, Wyoming; and Milford, Utah. Guernsey and Milford are
rail-connected quarries while Fort Calhoun ships material via barge
on the Missouri River in addition to its local and long-haul truck
market in Nebraska. The 49% interest purchased relates to the
Granite Canyon, Wyoming, quarry where Martin Marietta is the
operating manager. Granite Canyon is a major supplier of railroad
ballast serving both the Union Pacific Railroad and Burlington
Northern Santa Fe Railway. Aggregate shipments in 2008, including
the partial interest only in Granite Canyon, were 3.3 million
tons.
Commenting on the acquisition, Stephen P. Zelnak, Jr., Chairman
& CEO of Martin Marietta, stated: �We are pleased to be able to
add this set of quarries to our western operations as well as being
able to purchase the minority interest at Granite Canyon. These
operations are a very good fit with our Western business and will
enable us to pursue growth via additional rail and water transport
possibilities. Financially, we expect the acquired operations to be
modestly accretive in 2009 with increased contributions as the
economy improves.�
Ward Nye, President & COO, further commented: �In addition
to enhancing our existing logistical network, these new quarries
provide attractive product synergies. Ballast and rip-rap are
notable in stimulus and other construction projects critical to the
rebuilding of U.S. infrastructure. The sites also strengthen our
position as a premier stone supplier to the railroad industry. We
will substantially complete the integration of these new operations
into our existing business within a matter of days.�
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.
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