TECNOGLASS COMPLETES PAYMENT OBLIGATIONS FOR PURCHASE OF GM&P
May 07 2018 - 7:00AM
Tecnoglass, Inc. (NASDAQ: TGLS)
("Tecnoglass" or the "Company"),
a
leading manufacturer of architectural glass, windows, and
associated aluminum products for the global commercial and
residential construction industries, today announced that it has
completed its payment obligations pursuant to the
previously-announced acquisition of Giovanni Monti and Partners
Consulting and Glazing Contractors, Inc. ("GM&P").
As reported on March 1, 2017, Tecnoglass entered
into and consummated a purchase agreement to acquire GM&P for a
total purchase price of $35 million, of which $6 million was paid
within 60 days of the agreement. On May 4, 2018, the Company
completed the payment of the remaining $29 million purchase price
for GM&P through the payment of $6 million of cash on hand, the
execution of a $10 million junior subordinated note and the
issuance of TGLS ordinary shares. The note will have
semi-annual interest-only payments at a fixed rate of 6% per annum
and matures in March 2022. The 1,238,095 TGLS ordinary shares had
an aggregate value of $13 million. This represented a price of
$10.50 per share, or a 23% premium over the last sale price of the
TGLS ordinary shares on the date of payment.
José M. Daes, the Company's Chief Executive
Officer, commented, "We are pleased to complete this transaction
through a highly accretive payment structure, which also preserves
significant financial flexibility to support our growth
objectives. GM&P has already exceeded our initial
expectations and contributed meaningfully to our U.S. revenue and
backlog growth trajectory during the past 14 months. We look
forward to additional success through the enhanced vertical
integration and market penetration provided by our GM&P
operations.”
About Tecnoglass
Tecnoglass Inc. is a leading manufacturer of
architectural glass, windows, and associated aluminum products for
the global commercial and residential construction industries.
Tecnoglass is the #1 architectural glass transformation company in
Latin America and the second largest glass fabricator serving the
United States. Headquartered in Barranquilla, Colombia, the Company
operates out of a 2.7 million square foot vertically‐integrated,
state‐of‐the‐art manufacturing complex that provides easy access to
the Americas, the Caribbean, and the Pacific. Tecnoglass supplies
over 900 customers in North, Central and South America, with the
United States accounting for more than 70% of revenues. Tecnoglass'
tailored, high‐end products are found on some of the world’s most
distinctive properties, including the El Dorado Airport (Bogota),
50 United Nations Plaza (New York), Trump Plaza (Panama), Icon Bay
(Miami), and Salesforce Tower (San Francisco). For more
information, please visit www.tecnoglass.com or view our corporate
video at https://vimeo.com/134429998.
Forward Looking Statements
This press release includes certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding future financial performance, future growth and future
acquisitions. These statements are based on Tecnoglass’ current
expectations or beliefs and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in
economic, business, competitive and/or regulatory factors, and
other risks and uncertainties affecting the operation of
Tecnoglass’ business. These risks, uncertainties and contingencies
are indicated from time to time in Tecnoglass’ filings with the
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Further, investors
should keep in mind that Tecnoglass’ financial results in any
particular period may not be indicative of future results.
Tecnoglass is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events and changes
in assumptions or otherwise, except as required by law.
Investor Relations:
Santiago Giraldo
Chief Financial Officer
305-503-9062
investorrelations@tecnoglass.com
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