CRH to acquire cement and concrete assets from Martin Marietta Materials in Texas for $2.1bn

CRH plc, a global leader in building materials solutions, has announced its agreement to acquire a significant portfolio of cement and readymixed concrete assets in Texas, USA, from Martin Marietta Materials, Inc. for a total of $2.1 billion. This acquisition is set to bolster CRH plc’s presence in high-growth markets with an expected pro-forma 2023 EBITDA of approximately $170 million.

Enhancing Texas Market Presence with New Assets

The acquired assets include a 2.1 million ton capacity cement plant located strategically between San Antonio and Austin, and a network of terminals along the eastern gulf coast of Texas. Additionally, the portfolio encompasses 20 readymixed concrete plants with annual shipments of approximately 1.6 million cubic yards, primarily serving the Austin and San Antonio markets.

CRH plc’s Vision for the Acquisition

Albert Manifold, Chief Executive of CRH, expressed his vision for the acquisition, emphasizing the enhancement of CRH’s market-leading position in Texas and increasing exposure to attractive markets. The acquisition aligns with CRH’s strategy to leverage its cement expertise and technical capabilities to optimize its Texas footprint, aiming for substantial synergies and self-supply opportunities. Manifold highlighted the disciplined approach to capital allocation and the potential for additional growth opportunities in this market.

Regulatory Approval and Expected Completion

The proposed transaction is subject to regulatory approval and is expected to be completed in the first half of 2024. This acquisition signifies a significant step in CRH plc’s commitment to delivering growth and value creation for its shareholders and expanding its footprint in the attractive Texas market.