Texas Industries’ CEO Mel Brekhus on Martin Marietta Merger

Leaders say the combined company will have uniquely positions assets across the nation's largest and fastest-growing regions, including Texas and California.

The boards of Dallas-based Texas Industries Inc. (NYSE: TXI) and Raleigh, N.C.-based Martin Marietta Materials Inc. (NYSE: MLM) have unanimously approved the companies’ merger. Under the terms of the all-stock deal, valued at more than $2 billion, Martin Marietta will acquire all outstanding shares of Texas Industries common stock.

Texas Industries is the largest producer of cement in Texas, a leading producer in California, and a major supplier of construction aggregate concrete products. Martin Marietta is the nation’s second-largest producer of construction aggregates, and a producer of magnesia-based chemicals and dolomitic lime. The joining of the two will create a market-leading aggregates and heavy building materials supplier, with more product diversity and a strengthened distribution network.

“We believe this combination with Martin Marietta represents another step forward for Texas Industries, as we seek to continuously improve our business and maximize value for our shareholders,”  said Mel Brekhus, Texas Industries’ president and CEO, during a conference call held by the companies on Tuesday morning. “As one entity, MM and TXI will benefit from increased scale and scope, a more diversified portfolio of products, and significant exposure to the attractive aggregates business. We’ve long admired Martin Marietta’s success and strong execution track record, and we believe the combination provides opportunities for significant value creation.”

Texas Industries shareholders will receive 0.700 shares of Martin Marietta stock for each share of Texas Industries common stock they own, in a tax-free, stock-for-stock transaction. Based on closing market price data for both companies, the combined company will have an approximate enterprise value of $8.5 billion.