Texas Industries reportedly agrees to deal with Martin Marietta
01/27/2014 5:42 PM
01/27/2014 5:42 PM
Texas Industries has agreed to be acquired by Raleigh-based Martin Marietta Materials, Bloomberg News reported Monday, citing a person with knowledge of the matter.
Bloomberg first reported that the two companies were in discussions about a possible all-stock deal last week. Neither company immediately returned requests seeking comment, Bloomberg said.
The acquisition would be Martin Marietta’s first since its hostile takeover of rival Vulcan Materials failed in 2012.
Martin Marietta is the second largest producer rock, gravel and other materials used to build roads, subdivisions and commercial buildings. The company operates a network of about 300 quarries, distribution yards and plants in 28 states, Canada, the Bahamas and the Caribbean.
Dallas-based Texas Industries primary markets are in Texas and California.
Martin Marietta is signifigantly larger than Texas Industries in terms of its market value. The company has a market capitalization of about $4.75 billion, or more than double Texas Industries market cap of just over $2 billion.
Both companies stock fell Monday.
Martin Marietta closed at $102.78, down $1.54. Texas Industries closed at $71.54, down $3.52.
After plummeting during the recession, demand for construction materials has been improving in recent months, driven largely by an increase private sector construction. The private sector activity has helped offset uncertaintly over the level of government spending on roads going forward.
Martin Marietta reported in July that revenue increased 3 percent in the second quarter despite the company being hurt by extremely wet weather in several of its markets.
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