Martin Marietta Buys Lhoist North America for $13.5B

Martin Marietta Materials has confirmed a definitive agreement to purchase Lhoist North America, Inc. for $13.5 billion. This significant acquisition includes $7.0 billion in cash and $6.5 billion worth of Martin Marietta shares, valued based on a 15-day volume-weighted average price. The deal values Lhoist North America at approximately 15 times its projected 2025 Adjusted EBITDA.

Lhoist North America operates 20 quarries and production sites, complemented by 45 distribution terminals. For the twelve months ending December 31, 2025, the company reported $1.8 billion in gross sales and $786 million in Adjusted EBITDA. Its extensive limestone reserves exceed 2 billion tons, ensuring over two centuries of projected use.

Martin Marietta anticipates realizing around $85 million in annual cost savings post-acquisition. The company expects its combined net leverage ratio to be approximately 3.7 times at closing, with plans to reduce this below 2.5 times within 24 months via free cash flow generation.

Upon completion of the transaction, the Berghmans family, owners of Lhoist Group, will hold about 15% of Martin Marietta. They will also gain the right to appoint one director and one observer to Martin Marietta's board. The deal's closing is projected for the second half of 2026, pending regulatory approvals.