Martin Marietta To Acquire Bluegrass Materials For $1.625 Billion In Cash

By Ciara Linnane Markets MarketWatch Pulse

Building materials supplier Martin Marietta Materials Inc. said Monday it has agreed to acquire Bluegrass Materials Co. for $1.625 billion in cash. Bluegrass is a privately held aggregates company with a portfolio of high-quality reserves, Martin Marietta said in a statement. "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," said the statement. The deal is expected to close in the fourth quarter and to boost earnings per share and free cash flow in its first year after closing. Martin Marietta shares were not yet active premarket, but have gained 3% in 2017, while the S&P 500 has gained 9%.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.