June 26 (Reuters) - Building materials supplier Martin Marietta Materials Inc agreed to buy privately held Bluegrass Materials Co for about $1.63 billion in cash to expand into mid-Atlantic region.
Bluegrass Materials, which makes aggregates and concrete blocks, operates 23 sites across Georgia, South Carolina, Maryland, Kentucky and Tennessee.
The deal allows Martin Marietta to expand into Maryland’s Baltimore, Frederick, Hagerstown and Eastern Shore metropolitan areas as well as Delaware.
“With aggregates shipments currently 20 percent to 30 percent below peak levels, all of these markets are expected to benefit from the accelerating economic recovery in the eastern United States,” the company said in a statement.
Martin Marietta said it expected cost savings of about $15 million from the deal, which is expected to close in the fourth quarter. (Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D‘Silva)