Martin Marietta receives regulatory approvals for asset exchange with Quikrete

Published 02/10/2025, 21:22
Martin Marietta receives regulatory approvals for asset exchange with Quikrete

RALEIGH, N.C. - Martin Marietta Materials, Inc. (NYSE:MLM), a building materials giant with a market capitalization of $37.8 billion and trading near its 52-week high of $634.84, announced Thursday it has received all necessary regulatory approvals for its previously announced asset exchange with Quikrete Holdings, Inc.

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, according to a company press release.

Under the terms of the agreement, Martin Marietta will acquire aggregates operations with annual production of approximately 20 million tons across Virginia, Missouri, Kansas and Vancouver, British Columbia, as well as $450 million in cash.

In exchange, Quikrete will receive Martin Marietta’s Midlothian cement plant, associated cement terminals, and ready-mixed concrete assets in North Texas.

Martin Marietta, a member of the S&P 500 Index, is a supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. The company operates across 28 states, Canada and The Bahamas.

The transaction represents a significant asset reallocation for both companies in the building materials sector, with Martin Marietta gaining substantial aggregate production capacity while divesting certain cement and concrete operations in Texas.

The deal’s completion remains subject to satisfaction of closing conditions as outlined in the agreement between the two companies.

In other recent news, Martin Marietta Materials announced a 5 percent increase in its quarterly cash dividend, raising it from $0.79 to $0.83 per share. This move will result in an annualized cash dividend of $3.32 per share. The company reported mixed second-quarter 2025 earnings, with earnings per share surpassing expectations at $5.43, while revenue fell short at $1.81 billion against a projected $1.89 billion. Analysts at Stifel and Jefferies have raised their price targets for Martin Marietta, citing strong pricing and merger and acquisition potential, respectively. Stifel increased its target to $637, maintaining a Buy rating, while Jefferies raised its target to $700. Additionally, Martin Marietta announced an asset exchange with Quikrete, receiving aggregate operations with a 20 million-ton capacity and $450 million in cash. RBC Capital also adjusted its price target to $525, highlighting the company’s robust second-quarter performance despite weather and macroeconomic challenges. These developments reflect recent strategic moves and financial results for Martin Marietta.

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