Martin Marietta to acquire Hanson assets in $2.3 billion deal

Martin Marietta came to an agreement to acquire Lehigh Hanson’s West Region business for $2.3 billion in cash.

The acquisition includes 17 active quarries, two cement plants with related distribution terminals, and targeted downstream operations. Martin Marietta will have a coast-to-coast geographic footprint with expanded product offerings following the deal’s closing.

Martin Marietta expects the transaction to close in the second half of 2021. The deal is subject to regulatory approvals and other customary closing conditions.

“We continue to successfully execute on our strategic initiatives to enhance our footprint and responsibly expand our business,” says Ward Nye, chairman, president and CEO of Martin Marietta. “Lehigh’s West Region has leading positions in some of the nation’s most attractive markets, providing Martin Marietta with access to new geographies for continued industry-leading growth.

“With this acquisition, our company will be well-positioned to capitalize on long-term demand drivers from increased state infrastructure investment in California and Arizona, as well as continued private-sector growth across these regions,” Nye adds. “We are confident in our ability to quickly realize the benefits of this transaction following the same proven approach we took with our acquisitions of TXI and Bluegrass.”

At the end of 2020, Bloomberg reported that HeidelbergCement, Lehigh Hanson’s parent company was exploring a divestment that would help the company focus on the East Coast, Midwest and Canada within North America.

Featured photo: P&Q Staff