Featured Company News – Martin Marietta Materials Acquires the Concrete Block Producer, Bluegrass Materials Co.

Research Desk Line-up: Apogee Enterprises Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 28, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Martin Marietta Materials, Inc. (NYSE: MLM), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=MLM. The Company announced on June 26, 2017, that it is entering into a definitive agreement which pertains to the acquisition of Bluegrass Materials Co. for $1.625 billion in cash. As per Martin Marietta, the transaction will be accretive to earnings per share and cash flow in the first full year. For immediate access to our complimentary reports, including today’s coverage, register for free now at: http://protraderdaily.com/register/.

Discover more of our free reports coverage from other companies within the General Building Materials industry. Pro-TD has currently selected Apogee Enterprises, Inc. (NASDAQ: APOG) for due-diligence and potential coverage as the Company announced on June 21, 2017, its financial results for Q1 FY18. Tune in to our site to register for a free membership, and be among the early birds that get our report on Apogee Enterprises when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MLM; also brushing on APOG. Go directly to your stock of interest and access today’s free coverage at:

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Prospects of the Agreement

This acquisition is set to scale Martin Marietta Materials as a major industry leader and to expand into the mid-Atlantic region. Eventually, Bluegrass’ Georgia and South Carolina operations will accompany Martin Marietta’s existing south-eastern business which will also expand the portfolio of products for new and old customers. It will further simplify Bluegrass Materials Business Model and will maximize shareholder value by focusing on aggregate shipments which are currently 20% to 30% below the peak levels but will benefit from the accelerating economic recovery in the United States.

Bluegrass Materials occupies a leading position in Bowling Green, Eastern Kentucky, and it is also a leading aggregates producer in Maryland, which will provide Martin Marietta with a strategic new growth platform. On completion of the transaction, both companies will work together following their similar culture and values. Additionally, this agreement will help Martin Marietta and Bluegrass achieve growth and operational excellence.

Martin Marietta Growth Profile

Martin Marietta expects to achieve annual run-rate cost savings of about $15 million from this transaction. Including synergies, the purchase price represents a multiple that is in-line with recently completed aggregates transactions.

On July 02, 2014, Martin Marietta Materials announced that it has acquired Texas Industries after the overwhelming response by the shareholders of both companies. This transaction was a result of a special meeting held on June 30, 2014. This enhanced Martin Marietta’s position as a low-cost operator in the US. Along with this acquisition, Martin Marietta gained high-quality assets in cement and ready-mix concrete. Together, Martin Marietta and Texas Industries hold a market capitalization value of approximately $8.8 billion.

Martin Marietta’s New CFO Profile

On June 22, 2017, Martin Marietta Materials announced the retirement of its Executive Vice President and Chief Financial Officer, Anne H. Lloyd, who has been working in this position for 12 years. Anne H. Lloyd will retire in mid-August 2017, but she will be working until September which will allow a smooth transition.

A.J. Nickolas has been selected as the new Senior Vice President and Chief Financial Officer by the Martin Marietta’s Board of Directors. Nickolas will report to C. Howard Nye who is the Chairman, President, and CEO. Nickolas has recently been a major part leading the Corporate Development group at Caterpillar Incorporation and initially served as Group Chief Financial Officer of the Resources Industries segment at Caterpillar.

Bluegrass Materials Working Portfolio

Bluegrass holds a position in the nation’s highest growth markets through its operational investments and also maintains an impressive cost discipline to deliver significant value to shareholders. With an asset portfolio of seven aggregates quarries, three resale aggregates distribution centers, and one concrete block manufacturing facility in Kentucky from CEMEX, Bluegrass has the potential to grow its production base to a large extent with Martin Marietta.

Last Close Stock Review

At the closing bell, on Tuesday, June 27, 2017, Martin Marietta Materials’ stock fell 2.99%, ending the trading session at $225.29. A total volume of 566.90 thousand shares have exchanged hands. The Company’s stock price surged 7.32% in the last three months, 0.08% in the past six months, and 25.69% in the previous twelve months. Moreover, the stock gained 1.70% since the start of the year. The stock is trading at a PE ratio of 34.04 and has a dividend yield of 0.75%. The stock currently has a market cap of $14.15 billion.

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