The acquisition will “complement Martin Marietta’s existing southeastern footprint, while expanding the range of products that can be provided,” the company said in a statement. Bluegrass also provides Martin Marietta with a foothold in the northeast with the ability to service the markets in Baltimore, Frederick, Hagerstown, and the Maryland Eastern Shore metropolitan areas, as well as Delaware.
These areas are expected to benefit from the accelerating economic recovery in the eastern US. Current aggregates shipments in the region are 20% - 30% below peak levels.
The Bluegrass deal “directly aligns with our long-term strategic growth plan,” said Ward Nye, Chairman, president, and CEO of Martin Marietta. The transaction is expected to close in 4Q17, subject to regulatory approvals and customary closing conditions.
