Displaying items by tag: Texas Industries Inc

US: Martin Marietta Materials' US$2.7bn purchase of Texas Industries has been approved by the US Justice Department under a settlement that requires asset sales. Martin Marietta will sell rail yards in Texas and a quarry in Oklahoma to maintain competition in the market for gravel, sand and crushed stone.

"Without the divestiture obtained by the antitrust division, customers would have likely faced higher prices as a result of this acquisition," said Bill Baer of the US Justice Department.

US: Martin Martietta Materials has announced that it expects to enter an agreement with the US Department of Justice that will resolve all antitrust concerns over its planned US$2.7bn acquisition of Texas Industries.

Martin Marietta said that it believes the agreement will be finalised by 27 June 2014. It anticipates that the agreement will require it to divest its North Troy quarry in Mill Creek, Oklahoma and two rail yards in Dallas and Frisco, Texas. Martin Marietta has also announced that it plans to restructure Texas Industries' debt, offering US$700m in notes due in 2017 and 2024.

Martin Marietta and Texas Industries are both scheduled to hold special shareholder meetings on 30 June 2014 to vote on proposals. With the addition of Texas Industries, Martin Marietta will operate a network of more than 400 quarries, distribution yards and plants in 36 states, Canada, the Bahamas and the Caribbean.

Update 29 January 2014

US: US construction materials giant Martin Marietta has agreed to purchase Texas Industries (TXI), which has 6Mt/yr of cement capacity and a raft of ready mix concrete facilities in Texas and California, for US$2.7bn.

Martin Marietta's chief executive, C Howard Nye, said, "We like the Texas market a lot. This augments the position we have in Dallas - Fort Worth. The Texas market, for the long term, is one of the most dynamic in the country."

Original story

US: Construction materials maker Martin Marietta Materials is in advanced talks to acquire Texas Industries. Texas Industries currently has a market capitalisation of US$2.15bn. A deal is expected as early as February 2014.

Reports in mid-December 2013 revealed that the owners of Texas Industries were exploring a sale of the company and were working with Citigroup to find a buyer. Texas Industries' largest shareholders, Southeastern Asset Management and NNS Holding, have been seeking to sell their stakes in the company for some time. Combined, the two investors own more than 51% of the company.

Texas Industries has a 6Mt/yr cement production capacity that is expected to grow to almost 8Mt/yr in the next few years. The company reported a second quarter net loss of US$17.6m in January 2014, despite a growth in net sales from US$168m in the second quarter of 2013 to US$209 for the same period of 2014. The net loss was blamed on higher interest expenses.

US: Texas Industries Inc's (TXI) fiscal second-quarter loss widened as the construction materials company reported higher product costs and a jump in interest expenses, masking broad sales growth that boosted the top line. Though TXI reported higher sales for cement, concrete and the company's aggregate operations, the results were weaker than expected.

The company, which sells cement and other building materials in Texas and California, has struggled to compete against more geographically diverse peers. However, TXI has reported stronger sales so far this fiscal year.

For the quarter that ended on 30 November 2013 TXI reported a loss of US$17.6m compared to a loss of US$11.1m in the quarter that ended on 30 November 2012, while net sales grew by 25% to US$209m. Its gross margin narrowed to 6.8% from 7%. Sales by its cement segment, the company's largest top-line contributor, increased by 12% on higher shipments and a slight increase in prices. TXI announced that while pricing has improved, its prices still remain well below levels seen prior to the recession.