This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs