Martin Marietta Materials Completes Texas Industries Acquisition
Transaction Creates Market Leading Supplier of Aggregates and Heavy Building Materials
Martin Marietta is well-positioned for long-term growth, with a network of more than 400 facilities spanning 36 states, Canada, and the Caribbean Islands. The company is a leading aggregates producer, and the increased scale and geographic and product diversity resulting from the transaction provides a broader set of opportunities for growth. In addition, select vertical integration is expected to reduce distribution and transportation costs, diversify end-markets and drive other value enhancing efficiencies. The company has an outstanding asset base to deliver superior product offerings and service to customers.
Financial Benefits of the Transaction
Martin Marietta continues to expect that the combination will generate approximately $70 million of annual pre-tax synergies by calendar year 2017, which would correspond to more than $500 million of total value creation for shareholders. Integration of the acquired business is underway and proceeding as planned. The company anticipates the transition to its target operating model to be completed by the end of the year. The combination is expected to be both accretive to Martin Marietta's earnings per share in 2014, excluding one-time costs; and cash flow accretive in the first full year following integration.
In addition, Martin Marietta continues to expect to utilize
As a result of the completion of the merger, the common stock of
Advisors
J.P. Morgan, Deutsche Bank and Barclays acted as Martin Marietta's
financial advisors and
About
Martin Marietta, an American company and a member of the S&P 500 index,
is a leading supplier of aggregates and heavy building materials, with
operations spanning 36 states,
Cautionary Statements Regarding Forward-Looking Statements
Certain statements in this communication regarding the acquisition by
Martin Marietta, benefits and synergies of the transaction, future
opportunities for the combined company and products and any other
statements regarding Martin Marietta's future expectations, beliefs,
plans, objectives, financial conditions, assumptions or future events or
performance that are not historical facts are "forward-looking"
statements made within the meaning of Section 21E of the Securities
Exchange Act of 1934. These statements are often, but not always, made
through the use of words or phrases such as "may", "believe,"
"anticipate," "could", "should," "intend," "plan," "will," "expect(s),"
"estimate(s)," "project(s)," "forecast(s)", "positioned," "strategy,"
"outlook" and similar expressions. All such forward-looking statements
involve estimates and assumptions that are subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from the results expressed in the statements. Among
the key factors that could cause actual results to differ materially
from those projected in the forward-looking statements are the
following: the possibility that Martin Marietta may be unable to achieve
expected synergies and operating efficiencies in connection with the
transaction within the expected time-frames or at all and to
successfully integrate TXI's operations into those of Martin Marietta;
the integration of TXI's operations into those of Martin Marietta being
more difficult, time-consuming or costly than expected; operating costs,
customer loss and business disruption (including, without limitation,
difficulties in maintaining relationships with employees, customers,
clients or suppliers) being greater than expected following the
transaction; the retention of certain key employees of TXI being
difficult; Martin Marietta's ability to adapt its services to changes in
technology or the marketplace; Martin Marietta's ability to maintain and
grow its relationship with its customers; levels of construction
spending in the markets; a decline in the commercial component of the
nonresidential construction market and the subsequent impact on
construction activity; a slowdown in residential construction recovery;
unfavorable weather conditions; a widespread decline in aggregates
pricing; changes in the cost of raw materials, fuel and energy and the
availability and cost of construction equipment in
Executive
Vice President and Chief Financial Officer
www.martinmarietta.com
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