CRH plc, headquartered in Dublin, Ireland, is set to invest $2.1 billion in expanding its operations in Texas. The company has entered into an agreement to acquire a portfolio of cement and ready mixed concrete assets in Texas from Martin Marietta Materials, Inc.
The assets include the Hunter Cement Plant in New Braunfels, a network of terminals along the eastern gulf coast of Texas, and 20 ready mixed concrete plants with annual shipments of 1.6 million cubic yards, serving the Austin and San Antonio markets.
Originally acquired by Martin Marietta Materials in 2014 when it purchased Texas Industries (TXI), these assets are now part of the deal.
Albert Manifold, CEO of CRH, stated, “The acquisition of these high-quality assets further strengthens our market-leading position in Texas and increases our exposure to attractive, high-growth markets. Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimize our existing footprint in Texas, resulting in significant synergies and self-supply opportunities.”
The proposed transaction is awaiting regulatory approval and is expected to be completed in the first half of 2024.
Long-Term Growth Strategy
Martin Marietta has meticulously developed its Strategic Operating Analysis and Review (SOAR) initiatives to establish a responsible and sustainable framework for business growth and capital deployment. The company is dedicated to implementing SOAR plans, encompassing portfolio optimization, evaluating strategic partnerships and arrangements with similar businesses, expanding its presence in core sectors, investing in internal growth initiatives in high-growth markets, and exploring new opportunities within its existing markets.
In early 2021, the company outlined its SOAR 2025 objectives, a five-year plan aimed at driving substantial value creation for the business and stakeholders. This strategic approach guides Martin Marietta’s efforts for the next five years.
In alignment with its 2025 initiative, Martin Marietta executed the divestiture of the Tehachapi California cement plant to UNACEM Corp. SAA on October 31, 2023, for a total of $315 million. This strategic move enhances the company’s balance sheet flexibility, facilitating a shift towards growth led by quality aggregates. Additionally, the divestiture of its Stockton cement import terminal in California was completed on May 3, 2023.
