Martin Marietta Materials NYSE:MLM has agreed to combine with Lhoist North America in a $13.5 billion transaction, including debt, as the company looks to deepen its position in construction materials. The deal will be funded with $7 billion in cash and $6.5 billion in Martin Marietta stock, giving the company a larger platform across aggregates and limestone supply.
Lhoist North America, based in Fort Worth, Texas, operates 20 quarries and production facilities and is part of Belgium's privately held Lhoist Group. Martin Marietta already supplies crushed stone, sand, gravel, ready-mixed concrete, asphalt and cement, and has benefited from federal infrastructure spending as well as the data center construction boom.
CEO Ward Nye said the combination could help Martin Marietta capture demand tied to advanced manufacturing, infrastructure and energy construction. Data center projects and related power and water work are expected to support building-materials demand through the second half of this year, though the stock moved lower before the open, with Martin Marietta shares down 2.3% in premarket trading.