Martin Marietta Materials Agreed to Buy Texas Industries In a Transaction Valued at $2.7 Billion
Martin Marietta Materials Inc. (MLM) agreed to buy cement maker Texas Industries Inc. (TXI) in a transaction valued at $2.7 billion, the biggest North American deal in the field in five years, to tap into a construction rebound in California and Texas.
Each Texas Industries share will be exchanged for 0.7 Martin Marietta share, according to a statement today. That valued Texas Industries at $71.95 a share, based on yesterday’s closing prices, or an implied increase of more than 15 percent from Dec. 12, according to the statement, before Bloomberg reported that the company was exploring a sale.
Buying Dallas-based Texas Industries gives Martin Marietta an entry into the cement market as home construction bounces back, after U.S. housing starts rose 18 percent to 923,400 last year for the most since 2007. Martin Marietta produces crushed stone, gravel and sand, which are known as aggregates and are mixed with cement to produce concrete.