Texas Industries Inc. (TXI) has agreed to a sale to Martin Marietta Materials Inc. (MLM), the U.S.’s second-largest producer of sand, gravel and crushed rock used in construction, a person with knowledge of the matter said.
A merger of the two companies could be announced as early as today, said the person, who asked not to be named because the information is private. The deal is likely to be an all-stock transaction, one person familiar with the matter said last week.
Texas Industries, which is based in Dallas, has a market value of about $2 billion and Raleigh, North Carolina-based Martin Marietta is currently worth almost $5 billion. Officials at both companies didn’t immediately reply to requests for comment by telephone and e-mail.
Texas Industries’ strength in California and its home state would give Martin Marietta an entry into the cement market amid a U.S. construction rebound. The crushed stone, gravel and sand that Martin Marietta already produces, known as aggregates, are mixed with cement to produce concrete. In 2013, builders began work on 923,400 homes, an increase of 18 percent from the prior year and the most since 2007.