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Martin Marietta to acquire Bluegrass Materials for $1.625 billion

Staff Writer | June 26, 2017
Martin Marietta Materials will acquire Bluegrass Materials Company for $1.625 billion in cash.
Martin Marietta
Acquisition   A cash transaction
Bluegrass is the largest privately-held, pure-play aggregates company in the United States, with a portfolio of more than 125 years of strategically-located, high-quality reserves.

Bluegrass operates 23 active sites across Georgia, South Carolina, Maryland, Kentucky and Tennessee, generating consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins that are consistent with those in Martin Marietta’s Southeast and Mid-Atlantic Divisions that the Company views as best-in-class.

Bluegrass’ Georgia and South Carolina operations complement Martin Marietta’s existing southeastern footprint while expanding the range of products that can be provided to both new and existing customers.

As the leading aggregates producer in Maryland, Bluegrass will provide Martin Marietta with a strategic new growth platform within the southern portion of the Northeast Megaregion, serving the Baltimore, Frederick, Hagerstown and Maryland Eastern Shore metropolitan areas as well as Delaware.

With aggregates shipments currently 20% to 30% below peak levels, all of these markets are expected to benefit from the accelerating economic recovery in the eastern United States.

Additionally, Bluegrass has leading positions in Bowling Green and eastern Kentucky and an attractive position in Tennessee.