Martin Marietta buying Texas Industries for $2.06B
NEW YORK (AP) a¿¿ Martin Marietta Materials is buying its Texas Industries in an all-stock deal worth $2.06 billion, creating a leading supplier of aggregates and heavy building materials with a strong presence in large, fast-growing markets like California and Texas.
Martin Marietta said Tuesday shareholders of Texas Industries will get 0.7 shares of Martin Marietta for each share held. Based on Monday's closing price, that amounts to $71.95 per share.
Shares of Texas Industries picked up $3.53, or 4.9 percent, to $75.07 in morning trading. The Dallas company's stock has climbed in recent weeks on speculation about a possible sale. Since Dec. 22 the stock is up 22.2 percent.
Shares of Martin Marietta rose $6.42, or 6.3 percent, to $109.20.Martin Marietta will also assume $700 million in Texas Industries' debt. It expects the deal to add to its net income in 2014 excluding one-time costs and assuming it is able to refinance the debt. Martin Marietta sells granite, limestone, sand and gravel, and it had $2.16 billion in revenue in 2013. Texas Industries makes cement and building materials, and it had $697 million in revenue in its latest fiscal year. The companies said that together, they have more than 400 quarries, mines, distribution yards, and plants in 36 states, Canada, the Bahamas and the Caribbean Islands. The combined company will keep the Martin Marietta Materials name and its headquarters in Raleigh, N.C. Martin Marietta executives including President and CEO Ward Nye will remain in charge, and one person jointly selected by Martin Marietta and Texas Industries will be appointed to the board. The companies say their boards approved the deal. They expect it to close during the second quarter. Martin Marietta also reported better-than-expected results for the fourth quarter Tuesday. The company said sales of aggregates and specialty products were strong because construction in the private sector has improved. It said net income grew 67 percent to $36 million, or 77 cents per share, from $21.5 million, or 46 cents per share. Revenue rose 9 percent to $545 million.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV