Martin Marietta Completes Acquisition Of Texas Industries

(RTTNews) - construction aggregates supplier Martin Marietta Materials, Inc. (MLM) said Wednesday that it has completed its acquisition of smaller peer Texas Industries, Inc. (TXI).

In January, Martin Marietta Materials agreed to buy Texas Industries in an all stock deal valued at about $2.7 billion, including the assumption of $0.7 billion of Texas Industries' debt.

The deal was approved by shareholders of both companies at their respective special meetings on June 30. Based on the closing price of Martin Marietta stock on July 1, the combined company has a market capitalization of about $8.8 billion.

As a result of the completion of the merger, the common stock of Texas Industries is no longer listed for trading on the New York Stock Exchange.

Martin Marietta continues to expect that the combination will generate about $70 million of annual pre-tax synergies by calendar year 2017, which would correspond to more than $500 million of total value creation for shareholders. Integration of the acquired business is underway and proceeding as planned. The combination is expected to be both accretive to Martin Marietta's earnings per share in 2014, excluding one-time costs; and cash flow accretive in the first full year following integration.

In addition, Martin Marietta continues to expect to utilize Texas Industries' more than $400 million in existing NOLs over the next few years.