CRH plc, a leading provider of building materials solutions, has announced that it has reached an agreement to acquire an attractive portfolio of cement and readymixed concrete assets in Texas, USA (the “Assets”) from Martin Marietta Materials, Inc. for a total consideration of $2.1 billion. The combined portfolio of assets is anticipated to generate pro-forma 2023 EBITDA of approximately $170 million.
The Assets include a 2.1mt capacity cement plant situated between San Antonio and Austin, a network of terminals along the eastern gulf coast of Texas and a portfolio of 20 readymixed concrete plants with annual shipments of c.1.6m cubic yards serving the Austin and San Antonio markets.
Albert Manifold, Chief Executive of CRH, commented: “The acquisition of these high-quality assets further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets.
Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimize our existing footprint in Texas, resulting in significant synergies and self-supply opportunities.
This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”
The proposed transaction is contingent on regulatory approval and is expected to be completed in H1 2024.
