Martin Marietta purchasing Bluegrass Materials

By |  June 26, 2017

Martin Marietta Materials Inc. will acquire Bluegrass Materials Co. for $1.625 billion.

Bluegrass is one of the largest privately-held aggregate producers in the United States, operating 23 active sites across Georgia, Kentucky, Maryland, South Carolina and Tennessee.

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, according to Martin Marietta.

As a leading aggregate producer in Maryland, Bluegrass will provide Martin Marietta with a strategic new growth platform serving the Baltimore, Frederick, Hagerstown and eastern shore metro areas, as well as Delaware.

With aggregate shipments currently 20 to 30 percent below peak levels, these markets are expected to benefit from the accelerating economic recovery in the eastern United States, Martin Marietta says. In addition, Bluegrass has leading positions in Bowling Green, Kentucky, as well as the eastern part of that state. Bluegrass has an attractive position in Tennessee as well, according to Martin Marietta.

“The acquisition of Bluegrass directly aligns with our long-term strategic growth plan,” says Ward Nye, chairman, president and CEO of Martin Marietta. “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.”

“The culture and values of both companies are closely aligned, and we look forward to welcoming Bluegrass to the Martin Marietta team,” Nye adds. “Working together, we will continue to achieve growth, operational excellence and cost discipline to deliver significant value for shareholders.”

Ted Baker II, Bluegrass’ CEO, offered sentiments on the transaction, as well.

“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,” Baker says. “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.”

Including synergies, Martin Marietta’s purchase price represents a multiple that is in line with recently completed aggregates transactions, the company says.

The transaction is expected to close in the fourth quarter of 2017, subject to regulatory approvals and other customary closing conditions.

Kevin Yanik

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Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or

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