CRH has reached an agreement to acquire a portfolio of cement and ready-mixed concrete (RMC) assets in Texas, USA, from Martin Marietta Materials for a total consideration of US$2.1bn. According to CRH, the combined portfolio of assets is expected to generate pro-forma 2023 EBITDA of approximately US$170m.
The assets include the 2.1Mta Hunter cement plant located between San Antonio and Austin, a network of terminals along the eastern gulf coast of Texas, and a portfolio of 20 RMC plants serving the Austin and San Antonio markets.
Albert Manifold, chief executive of CRH, said, “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 optimise our existing footprint in Texas, resulting in significant synergies and self-supply opportunities. This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market”.
The proposed transaction is subject to regulatory approval and is expected to complete in the 1H24.
