Tecnoglass, Inc., a leading manufacturer of architectural glass, windows, and associated aluminum products for the global commercial and residential construction industries, 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").
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.