Martin Marietta Completes Acquisition of Bluegrass Materials
May 02 2018 - 9:30AM
Martin Marietta Materials, Inc. (NYSE:MLM) today announced that it
successfully completed its previously announced acquisition of
Bluegrass Materials Company, the largest privately-held, pure-play
aggregates company in the United States, for $1.625 billion in
cash. The transaction, which closed on April 27, 2018,
provides a portfolio of more than 125 years of
strategically-located, high-quality reserves across Georgia, South
Carolina, Maryland, Kentucky and Tennessee.
Ward Nye, Chairman, President and CEO of Martin
Marietta, stated, “We are pleased to complete the Bluegrass
acquisition and welcome a talented group of new employees to the
Martin Marietta team. The acquisition, wholly consistent with
our long-term strategic growth plan, enhances our aggregates-led
position in high-growth southeastern and Mid-Atlantic regions and
expands our product offerings to both new and existing customers.
Bluegrass’ strategic assets and impressive cost profile, combined
with the depth and excellence of its personnel, strengthen our
ability to deliver significant value for shareholders, customers
and employees.”
Martin Marietta also announced that it has
reached an agreement with the U.S. Department of Justice (DOJ),
which has been submitted to the United States District Court for
the District of Columbia as a proposed court order. The agreement,
embodied in the proposed order, resolves all competition issues
with respect to the acquisition. Under the terms of the
agreement with the DOJ, Martin Marietta divested its Forsyth
aggregates quarry north of Atlanta, Georgia, and will divest
Bluegrass’ Beaver Creek aggregates quarry in western Maryland.
Martin Marietta expects to realize annual
synergies of approximately $15 million within twelve months of the
transaction’s close date. Excluding acquisition-related
expenses, the acquisition is also expected to be accretive to
earnings per share and cash flow within the first full year of
ownership. Integration of the acquired business is underway
and proceeding as planned.
Additional Information
Martin Marietta will provide additional
information about the Bluegrass acquisition on its first quarter
2018 earnings conference call and online web simulcast on May 8,
2018 at 11:00 AM Eastern Time. For those investors without
online web access, the first quarter 2018 earnings conference call
may also be accessed by calling (970) 315-0423, confirmation number
5287057.
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, 2017, our Current
Report on Form 8-K filed on March 16, 2018 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.
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 27
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.
Investor Contact: Suzanne Osberg
Vice President, Investor Relations (919)
783-4691Suzanne.Osberg@martinmarietta.com
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