Enhances Aggregates-Led Position in
Strategic, High-Growth Southeastern and Mid-Atlantic
Regions
Martin Marietta Materials, Inc. (NYSE:MLM) and Bluegrass Materials
Company today announced that they have entered into a definitive
agreement under which Martin Marietta will acquire Bluegrass for
$1.625 billion in cash.
Bluegrass is the largest privately-held,
pure-play aggregates company in the United States, with a portfolio
of more than 125 years of strategically-located, high-quality
reserves. Bluegrass operates 23 active sites across Georgia,
South Carolina, Maryland, Kentucky and Tennessee, generating
consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) margins that are consistent with those in Martin
Marietta’s Southeast and Mid-Atlantic Divisions that the Company
views as best-in-class.
Bluegrass’ Georgia and South Carolina operations
complement Martin Marietta’s existing southeastern footprint while
expanding the range of products that can be provided to both new
and existing customers. As the leading aggregates producer in
Maryland, Bluegrass will provide Martin Marietta with a strategic
new growth platform within the southern portion of the Northeast
Megaregion, serving the Baltimore, Frederick, Hagerstown and
Maryland Eastern Shore metropolitan areas as well as
Delaware. With aggregates shipments currently 20% to 30%
below peak levels, all of these markets are expected to benefit
from the accelerating economic recovery in the eastern United
States. Additionally, Bluegrass has leading positions in
Bowling Green and eastern Kentucky and an attractive position in
Tennessee.
Ward Nye, Chairman, President and CEO of Martin
Marietta, stated, “The acquisition of Bluegrass directly aligns
with our long-term strategic growth plan. Bluegrass’
strategic assets, combined with the depth and strength of its
personnel, are a natural fit with Martin Marietta. Through its
significant operational investments, Bluegrass has achieved leading
positions in some of the nation’s highest growth markets while
maintaining an impressive cost profile.”
Mr. Nye continued, “The culture and values of
both companies are closely aligned, and we look forward to
welcoming Bluegrass to the Martin Marietta team. Working
together, we will continue to achieve growth, operational
excellence and cost discipline to deliver significant value for
shareholders.”
Ted Baker II, CEO of Bluegrass, said, “We
ran a thorough, competitive process and we are pleased to partner
with Martin Marietta, an industry leader with strong values and a
distinguished safety record. My family and I thank our
company’s dedicated employees, along with our current partners,
Lindsay Goldberg and Bluewater Worldwide, for their investment and
meaningful support over the years.”
Martin Marietta expects annual run-rate cost
savings of approximately $15 million. Including synergies, the
purchase price represents a multiple that is in-line with recently
completed aggregates transactions. Martin Marietta expects
the transaction to be accretive to earnings per share and cash flow
in the first full year.
The transaction is expected to close in the
fourth quarter of 2017, subject to regulatory approvals and other
customary closing conditions.
About Martin Marietta
Martin Marietta, a member of the S&P 500
Index, is an American-based company and a leading supplier of
building materials, including aggregates, cement, ready mixed
concrete and asphalt. Through a network of operations spanning 26
states, Canada, and The Bahamas, dedicated Martin
Marietta teams supply the resources necessary for building the
solid foundations on which our communities thrive. Martin
Marietta's Magnesia Specialties business provides a full range of
magnesium oxide, magnesium hydroxide and dolomitic lime products.
For more information,
visit www.martinmarietta.com or www.magnesiaspecialties.com.
About Bluegrass Materials
Company
Bluegrass Materials Company, LLC is a wholly
owned subsidiary of Panadero Aggregates Holdings, LLC (“Panadero”).
Panadero was formed in 2010 as a partnership between John D. Baker
II and Ted Baker II, formerly of Florida Rock Industries, Lindsay
Goldberg LLC, and Bluewater Worldwide LLC, to acquire, develop and
operate aggregates and other related construction materials
businesses.
About Lindsay Goldberg LLC
Lindsay Goldberg is a private investment firm
with approximately $13 billion of equity capital that focuses on
partnering with family-owned and entrepreneur-led businesses
seeking a partner to help actively build their businesses. For more
information about Lindsay Goldberg, please visit
www.lindsaygoldbergllc.com.
Forward Looking Statements
This release contains statements which, to the
extent they are not recitations of historical fact, constitute
forward-looking statements within the meaning of federal securities
law. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, and are based on
assumptions that we believe in good faith are reasonable at the
time the statements are made, but which may be materially different
from actual results. Investors can identify these statements
by the fact that they do not relate only to historic or current
facts. The words “may”, “will”, “could”, “should”,
“anticipate”, “believe”, “estimate”, “expect”, “forecast”,
“intend”, “outlook”, “plan”, “project”, “scheduled” and similar
expressions in connection with future events or future operating or
financial performance are intended to identify forward-looking
statements. Any or all of Martin Marietta’s forward-looking
statements in this release may turn out to be wrong.
Statements and assumptions on future revenues,
income and cash flows, performance, economic trends, the outcome of
litigation, regulatory compliance and environmental remediation
cost estimates are examples of forward-looking statements.
Numerous factors could affect our forward-looking statements and
actual performance. In addition, other risks and
uncertainties not presently known to us or that we currently
consider immaterial could affect the accuracy of our
forward-looking statements.
Except as required by law, we undertake no
obligation to update any forward-looking statements in order to
reflect any event or circumstance that may arise after the date of
this release.
You should consider these forward-looking
statements in light of risk factors discussed in our annual report
on Form 10-K for the year ended December 31, 2016, our current
report on Form 8-K filed on May 12, 2017 and other periodic filings
made with the SEC. All of our forward-looking statements
should be considered in light of these factors. In addition,
other risks and uncertainties not presently known to us or that we
consider immaterial could affect the accuracy of our
forward-looking statements.
Investor Contact:
Dana Guzzo
Senior Vice President, Chief Accounting Officer and Controller
(919) 783-4540
Dana.Guzzo@martinmarietta.com
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Jul 2023 to Jul 2024