Martin Marietta Materials Inc announced that it has entered into a definitive agreement to sell certain West Coast cement and ready-mixed concrete operations to CalPortland Company for US$250m in cash. The operations include the Redding cement plant, related cement distribution terminals and 14 ready-mixed concrete plants located in California.
Ward Nye, Chairman, President and CEO of Martin Marietta, stated, “Consistent with our Strategic Operating Analysis and Review (SOAR) 2025 plan, we continually look for ways to optimise our portfolio and product mix through asset swaps and divestitures. After thoughtful evaluation, we determined that monetisation of these operations is the best avenue to maximise value for all stakeholders.”
The transaction is expected to close in the 2H22, subject to regulatory approvals and other customary closing conditions.
The parties have also entered into preferred arrangements regarding the potential sale of the company’s Tehachapi cement plant and related cement distribution terminals. However, there is no assurance that an agreement for Tehachapi will be entered into.
