Optimism in the industry?
Martin Marietta’s acquisition of Lehigh Hanson’s west region business is evidence that forward-looking optimism is abundant in construction materials and aggregates industry
Martin Marietta announced the acquisition of Lehigh Hanson’s west region business, which includes 2 cement plants, 13 cement terminals, 17 aggregate operations, 29 ready mix-plants, and 15 asphalt plants. With assets in California, Arizona, Nevada, and Oregon, the transaction expands Martin Marietta’s footprint into four new states, providing an immediate substantial presence in two of those and beachheads in two others. The Lehigh Hanson business represents one of the few remaining opportunities to enter these key markets with scale, and the $2.3B price tag reflects that scarcity. The valuation multiple is high even by today’s elevated standards, and is further evidence of the forward-looking optimism abundant in the industry at present.