Original source text
A specialist trader works at the post where Martin Marietta Materials is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 6, 2017. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tabSummaryCompaniesMartin Marietta to fund the deal with $7 billion cash and $6.5 billion in sharesThe Berghmans family would own roughly 15% of Martin Marietta after deal closesThe transaction would add 2 billion tons of limestone reserves in Sun Belt corridorsJune 29 (Reuters) - Martin Marietta Materials (MLM.N), opens new tab said on Monday it would merge with limestone supplier Lhoist North America in a cash-and-stock deal worth $13.5 billion, as the building material firm looks to tap growing demand for lime products.
Shares of the Raleigh, North Carolina-based company were down about 3% in premarket trade.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Martin Marietta will use a mix of $7 billion in cash along with shares valued at $6.5 billion to fund the deal, the company said. It expects to realize about $85 million in annual run-rate cost synergies.
Martin Marietta CEO Ward Nye said demand for high-quality lime products is expected to remain resilient for decades to come, due to investment in infrastructure, advanced manufacturing, energy development and industrial expansion in the U.S.
There has been a surge in dealmaking in the U.S. building-products industry as the data center construction business booms, along with new housing, repairs and renovations.
Last week, Ireland's CRH (CRH.N), opens new tab said it would acquire Arcosa (ACA.N), opens new tab in an all-cash deal valued at about $8.5 billion, in a bid to capitalize on rising demand for U.S. energy and utility infrastructure.
Lhoist's Berghmans family - which owns the privately held Lhoist Group, a Belgian industrial company - would own roughly 15% of Martin Marietta upon the deal's close.
The transaction would add quarries, production facilities, distribution terminals and 2 billion tons of limestone reserves in Sun Belt metropolitan corridors to Martin Marietta's portfolio.
Lhoist North America makes hi-calcium lime, dolomitic lime and industrial mineral products used in domestic steel manufacturing, infrastructure and heavy non-residential construction across North America.
The deal is expected to be completed in the second half of 2026, subject to regulatory approvals.
Reporting by Anshuman Tripathy in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab