Martin Marietta to Sell California Cement Plant and Related Terminals to CalPortland

Rhea-AI Summary

Martin Marietta Materials, Inc. (NYSE: MLM) has entered into a definitive agreement to sell its Tehachapi, California cement plant and related distribution terminals to CalPortland Company for $350 million in cash. The deal is expected to close in the first half of 2023, pending regulatory approvals and customary closing conditions.

This divestiture aligns with Martin Marietta's strategic focus, allowing the company to strengthen its core operations while enhancing shareholder value through the cash influx from this transaction.

Positive

• The sale of the Tehachapi cement plant for $350 million enhances liquidity.
• The transaction supports Martin Marietta's strategic focus on core operations.

Negative

• None.

RALEIGH, N.C., Aug. 09, 2022 (GLOBE NEWSWIRE) -- Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or the “Company”) today announced that it has entered into a definitive agreement to sell the Tehachapi, California cement plant and related distribution terminals to CalPortland Company for $350 million in cash.

The transaction is expected to close in the first half of 2023, subject to regulatory approvals and other customary closing conditions.

About Martin Marietta

Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 28 states, Canada and The Bahamas, dedicated Martin Marietta teams supply the resources for building the solid foundations on which our communities thrive. Martin Marietta’s Magnesia Specialties business produces high-purity magnesia and dolomitic lime products used worldwide in environmental, industrial, agricultural and specialty applications. For more information, visit www.martinmarietta.com or www.magnesiaspecialties.com.

About CalPortland Company

CalPortland Company is a major producer of cement, ready mixed concrete, aggregates, concrete products and asphalt in the western United States and Canada. Founded in 1891 with the principle of providing unsurpassed quality, CalPortland remains a leader in the industry through its commitment to quality, customer service, technical support and environmental leadership. For more information about CalPortland Company, visit www.calportland.com.

Investor Contact:
Jennifer Park
Vice President, Investor Relations
(919) 510-4736
jennifer.park@martinmarietta.com 

MLM-G

This release contains statements which constitute forward-looking statements within the meaning of federal securities law. Statements and assumptions on future revenues, income and cash flows, performance, economic trends, the outcome of litigation, regulatory compliance and environmental remediation cost estimates are examples of forward-looking statements. Numerous factors could affect the Company’s forward-looking statements and actual performance.

Investors are cautioned that all forward-looking statements involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable at the time the statements are made, but which may be materially different from actual results. Investors can identify these statements by the fact that they do not relate only to historic or current facts. The words “may”, “will”, “could”, “should”, “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “outlook”, “plan”, “project”, “scheduled” and other words of similar meaning in connection with future events or future operating or financial performance are intended to identify forward-looking statements. Any or all of Martin Marietta’s forward-looking statements in this release and in other publications may turn out to be wrong.

You should consider these forward-looking statements in light of risk factors discussed in Martin Marietta’s Annual Report on Form 10-K for the year ended December 31, 2021, Martin Marietta’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, and other periodic filings made with the SEC. All of the Company’s forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to the Company or that it considers immaterial could affect the accuracy of its forward-looking statements, or adversely affect or be material to the Company. Except as required by law, the Company undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

FAQ

What is the recent transaction announced by Martin Marietta (MLM)?

Martin Marietta announced the sale of its Tehachapi, California cement plant and related terminals to CalPortland for $350 million.

When is the expected closing date for the Martin Marietta (MLM) transaction?

The transaction is expected to close in the first half of 2023, subject to regulatory approvals.

What will Martin Marietta (MLM) gain from the sale of the Tehachapi plant?

The company will gain $350 million in cash, which will enhance its liquidity and support strategic operations.

Who is acquiring the Tehachapi cement plant from Martin Marietta (MLM)?

CalPortland Company is the buyer of the Tehachapi cement plant and distribution terminals.