Nye, Martin Marietta look ahead as top-ranked producer

By |  July 2, 2014

The completion of Martin Marietta Materials Inc.‘s acquisiton of Texas Industries Inc. means Martin Marietta is now the largest aggregate-producing company in the United States. The combination of Martin Marietta, which ranks second on Pit & Quarry‘s MegaProducers 2014 list, with 12th-ranked Texas Industries Inc. makes Martin Marietta the highest-volume aggregate-producing company in the United States.

Vulcan Materials Co. was previously No. 1.

“We are excited to move forward as one company that is even better positioned to deliver increased value to shareholders, customers and employees,” says Ward Nye, Martin Marietta’s chairman, president and CEO, in a press release, Uniting our complementary assets and leveraging our expanded geographic footprint provides Martin Marietta with an expanded platform for growth. In particular, Martin Marietta will benefit from greater exposure to the expanding cement markets in Texas and California – two of the largest and fastest growing markets for construction materials in the United States.

“I look forward to continuing to work closely with our team and all of our employees, including our new team members from TXI, to ensure a seamless transition as we continue to deliver superior product offerings and service to customers,” Nye continues.

According to a press release, Martin Marietta now has more than 400 facilities spanning 36 states, Canada and the Caribbean islands. Martin Marietta expects the deal to help reduce distribution and transportation costs and drive other value enhancing efficiencies.

In addition, Martin Marietta expects the combination to generate about $70 million of annual pre-tax synergies by 2017. According to the company, this would correspond to more than $500 million of total value creation for shareholders.

Martin Marietta also says integration of Texas Industries is under way and proceeding as planned. The company anticipates the transition to be completed by the end of this year. Texas Industries’ stock is no longer listed for trading on the New York Stock Exchange.

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