subscribe to ENR magazine subscribe
contact us
careers industry jobs
events events
Mcgraw Hill Construction
ENR Logo
& receive immediate web access

Martin Marietta Must Shed Texas-Oklahoma Assets To Buy Rival Texas Industries, Say Feds

Text size: A A
Martin Marietta
With the completed buy of Texas industries, Martin Marietta would be an $8.5-billion firm with 400 quarries, mines, distribution yards and plants in 36 states, Canada and the Caribbean.
----- Advertising -----

Martin Marietta Materials, a Raleigh, N.C., crushed stone, sand and gravel producer, must divest an Oklahoma quarry and two Texas rail yards to clear anti-trust hurdles and complete its planned $2.7-billion purchase of Dallas-based rival Texas Industries Inc. (TI), the U.S. Justice Dept. said on June 26.

Martin Marietta last year shipped 128.4 million tons of aggregates across 30 states for $2.1 billion in net sales, with Texas accounting for its largest sales share, at 19%.

TI, which has 123 manufacturing facilities in five states, last year shipped 4.3 million tons of finished cement for $800 million in net sales.

The combined firm, valued at $8.5 billion, will have 400 quarries, mines, distribution yards and plants in 36 states, Canada and the Caribbean. The deal makes Martin Marietta the largest U.S. aggregates producer, surpassing Vulcan Materials Co.

The stock-for-stock purchase of TI (NYSE: TXI), the state’s largest concrete producer and third biggest in California, strategically positions the 53-year-old Martin Marietta to capitalize on a recovering housing market.

U.S. housing starts rose 18% to 923,400 last year, the most since 2007, reports the National Association of Home Builders.

The Martin Marietta divestiture involves three assets that primarily serve the Dallas-area, including an aggregate quarry in Mill Creek, Okla., and rail yards in Dallas and Frisco, Tex.

Martin Marietta (NYSE: MLM) common stock traded at $133.03-a-share on June 30, up 41.5% from a 52-week low of $94.01.

The deal is expected to generate $70 million in annual pre-tax synergies by 2017 through “complementary assets” and “an expanded geographic footprint,” said Martin Marietta’s President and CEO Ward Nye in a statement, adding that Texas Industries has “leading positions in some of the nation’s highest growth markets while maintaining a low cost profile.”

The merger, announced on Jan. 28, gives Martin Marietta shareholders 69% ownership of the combined company, which will continue operating under the same name and headquarters.

Martin Marietta executives will lead the combined entity, with “top talent across the combined organization” being retained on a “best athlete” approach, the companies said in a statement.


----- Advertising -----
  Blogs: ENR Staff   Blogs: Other Voices  
Critical Path: ENR's editors and bloggers deliver their insights, opinions, cool-headed analysis and hot-headed rantings
Project Leads/Pulse

Gives readers a glimpse of who is planning and constructing some of the largest projects throughout the U.S. Much information for pulse is derived from McGraw-Hill Construction Dodge.

For more information on a project in Pulse that has a DR#, or for general information on Dodge products and services, please visit our Website at

Information is provided on construction projects in following stages in each issue of ENR: Planning, Contracts/Bids/Proposals and Bid/Proposal Dates.

View all Project Leads/Pulse »

 Reader Comments:

Sign in to Comment

To write a comment about this story, please sign in. If this is your first time commenting on this site, you will be required to fill out a brief registration form. Your public username will be the beginning of the email address that you enter into the form (everything before the @ symbol). Other than that, none of the information that you enter will be publically displayed.

We welcome comments from all points of view. Off-topic or abusive comments, however, will be removed at the editors’ discretion.