Summary
CRH Public Limited Company (CRH) has announced an agreement to acquire a significant portfolio of cement and readymixed concrete assets in Texas, USA, from Martin Marietta Materials, Inc. for $2.1 billion. This strategic acquisition is expected to generate pro-forma 2023 EBITDA of approximately $170 million and is comprised of a cement plant with 2.1 million tonnes per annum capacity and 20 readymixed concrete plants serving the growing Austin and San Antonio markets. The transaction is designed to bolster CRH's market-leading position in Texas and increase its exposure to attractive, high-growth markets. Management anticipates leveraging its expertise to enhance and optimize the acquired assets, leading to significant synergies and self-supply opportunities. This move aligns with CRH's disciplined capital allocation strategy and commitment to delivering shareholder value through growth in key markets.
Key Highlights
- 1CRH to acquire Texas cement and concrete assets from Martin Marietta Materials for $2.1 billion.
- 2Acquisition expected to generate pro-forma 2023 EBITDA of approximately $170 million.
- 3Target assets include a 2.1mt capacity cement plant and 20 readymixed concrete plants in Texas.
- 4Strategic move strengthens CRH's market leadership in Texas and increases exposure to high-growth markets.
- 5Management expects significant synergies and self-supply opportunities from the integration.
- 6Transaction reflects disciplined capital allocation and commitment to shareholder value creation.
- 7Completion of the acquisition is subject to regulatory approval and anticipated in H1 2024.