Martin Marietta Materials has agreed to acquire Lhoist North America in a transaction valued at approximately $13.5 billion, its largest deal to date. The consideration includes $7 billion in cash and $6.5 billion in stock, subject to customary adjustments. Lhoist North America operates 20 quarries and production facilities and 45 distribution terminals, with more than 2 billion tons of limestone reserves. On a 2026 pro forma basis including run-rate synergies and New Frontier Materials, the combined business is indicated to generate about $3.3 billion of adjusted EBITDA from continuing operations, up from roughly $2.4 billion for Martin Marietta standalone, with adjusted EBITDA margin rising to 36% from 33%. Free-cash-flow conversion is indicated at 81% for the combined company versus 76% standalone. Management expects pro forma net leverage of about 3.7 times at closing and aims to reduce it below 2.5 times within 24 months. The company ended June with $112 million of unrestricted cash and $742 million of unused borrowing capacity, and later secured a commitment for a new three-year, $1.5 billion senior unsecured term loan facility tied to the transaction. Risks include obtaining financing and regulatory approvals, integrating the businesses, realizing expected synergies, and managing dilution from newly issued shares.
Martin Marietta Materials IncAcquiring Lhoist North America for $13.5B, its largest deal, expected to boost EBITDA and margins.
CRH PLC ADR
Vulcan Materials CompanyBeing acquired at a premium, providing liquidity and value to shareholders.
