Business · May 24, 2021

Martin Marietta – Acquisition of Lehigh Hanson’s West Region Business

Significant Geographic Expansion Creates Leading Upstream Materials Business in Strategic, High-Growth Western Megaregions

Transaction Expected to be Accretive to Earnings Per Share in First Full Year

RALEIGH, NC (STL.News) Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or the “Company”) today announced that it has entered into a definitive agreement under which Martin Marietta will acquire Lehigh Hanson, Inc.’s West Region business (“Lehigh West Region”) for $2.3 billion in cash.

Lehigh West Region provides the Company with a new upstream materials-led growth platform across several of the nation’s largest and fastest-growing megaregions in California and Arizona.  The acquisition, which is consistent with and advances the Company’s SOAR (Strategic Operating Analysis and Review) 2025 plan, includes 17 active aggregates quarries, two cement plants with related distribution terminals, and targeted downstream operations.  Following the closing, Martin Marietta will have a coast-to-coast geographic footprint with expanded product offerings.

Ward Nye, Chairman, President, and CEO of Martin Marietta, stated, “We continue to successfully execute on our strategic initiatives to enhance our footprint and responsibly expand our business.  Lehigh’s West Region has leading positions in some of the nation’s most attractive markets, providing Martin Marietta access to new geographies for continued industry-leading growth.  With this acquisition, our Company will be well-positioned to capitalize on long-term demand drivers from increased state infrastructure investment in California and Arizona as well as continued private-sector growth across these regions.  We are confident in our ability to quickly realize the benefits of this transaction following the same proven approach we took with our acquisitions of TXI and Bluegrass.  Those purchases delivered significant value creation as will the addition of the Lehigh West Region as Martin Marietta SOARs to a Sustainable Future.”

Martin Marietta expects the transaction to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions, and to be accretive to earnings per share in the first full year following closing.