Martin Marietta to buy Lhoist North America in $13.5 billion deal

Martin Marietta Materials Inc. agreed to buy limestone supplier Lhoist North America for $13.5 billion including debt, combining two of the largest construction aggregates producers in the U.S. as infrastructure spending drives demand for building materials.

"The deal gives Martin Marietta a dominant position in the high-margin limestone market at a time when federal and state infrastructure programs are accelerating," said Anthony Pettinari, analyst at Citigroup who rates the stock a Buy with a $804 price target.

The transaction will be funded with about $7 billion in cash and roughly $6.5 billion in Martin Marietta common stock, according to people familiar with the matter. The deal values Lhoist North America at about 36% of Martin Marietta's current market capitalization of $37 billion. Martin Marietta shares closed at $616.06 on June 26, down 2.1% on the day but up 5.9% over the prior 30 days.

The combination would significantly expand Martin Marietta's quarry and processing network across North America, giving it control over a critical input for road construction, concrete production and infrastructure projects. The deal requires regulatory approval and is expected to close in the second half of 2026.

Strategic Rationale and Market Position

Martin Marietta, based in Raleigh, North Carolina, generates revenue primarily from supplying aggregates, cement, ready-mixed concrete and asphalt used in infrastructure, commercial and residential construction. Lhoist North America, a subsidiary of Belgium-based Lhoist Group, operates limestone quarries and processing facilities across the U.S., adding high-quality reserves to Martin Marietta's existing portfolio.

The acquisition comes as U.S. construction spending benefits from federal infrastructure programs and state-level transportation budgets. Martin Marietta's last major acquisition was its $2.7 billion purchase of Bluegrass Materials in 2021, which expanded its footprint in the Southeast. The Lhoist deal is roughly five times that size, signaling a step-change in the company's growth strategy.

Citi's Pettinari recently raised his price target on Martin Marietta to $804 from $780, implying about 30% upside from the current share price. The stock trades on the New York Stock Exchange under the ticker MLM and is a member of the S&P 500 index. Its next earnings report is scheduled for Aug. 6.

This article is for informational purposes only and does not constitute investment advice.