Martin Marietta to enter deal with govt. over Texas Industries acquisition
06/23/2014 10:07 AM
06/25/2014 9:24 AM
CORRECTION: This story about Martin Marietta Materials included incorrect information about how much construction materials the company will have in reserve after it acquires Texas Industries. The merged company will have roughly 13.5 billion tons, not 13.5 million.
Martin Martietta Materials announced Monday that it expects to enter an agreement with the U.S. Department of Justice that will resolve all antitrust concerns over its planned $2.7 billion acquisition of Texas Industries.
Raleigh-based Martin Marietta said it believes the agreement will be finalized this week. The company anticipates the agreement will require it to divest its North Troy quarry in Mill Creek, Okla., and two rail yards in Dallas and Frisco, TX.
Martin Marietta also announced Monday that it plans to restructure Texas Industries debt, offering $700 million in notes due in 2017 and 2024.
Martin Marietta and Texas Industries are both scheduled to hold special shareholder meetings on June 30 to vote on proposals related to the acquisition.
The acquisition would make Martin Marietta the largest provider of rock, gravel and other construction materials in the country.
With the addition of Texas Industries, Martin Marietta will operate a network of more than 400 quarries, distribution yards and plants in 36 states, Canada, the Bahamas and the Caribbean. The company is also getting into the cement business, as Texas Industries operates several cement plants in California and Texas, where it is the largest producer.
The merged company will have roughly 13.5 billion tons of construction materials – known as aggregates – in reserve. The two companies shipped 143 million tons of materials last year, with Martin Marietta accounting for 128 million of that total.
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