As part of the transaction, Tecnoglass acquired: a 160,000 square foot warehouse / manufacturing /office facility in Miami; manufacturing and assembly equipment; and Miami-Dade Notice of Acceptance (NOA) for products manufactured and sold by Glasswall.Total consideration consisted of $4.0 million in Tecnoglass stock and a 15-year, $5.0 million term loan that Tecnoglass secured to acquire the facilities.
José M. Daes, Chief Executive Officer of Tecnoglass, commented, "We expect that this transaction will generate considerable near- and long-term benefits for Tecnoglass. We immediately broadened our product portfolio and client base. We have also consolidated the south Florida market, as Glasswall was a competitor known for its quality products, exciting design, and client service. Tecnoglass's U.S. sales continue to rise, and we remain committed to expanding our presence in this country. The acquired facilities will help support this growth by establishing a U.S. base for Tecnoglass. Although we will continue to manufacture at our 2.3 million square foot facility in Barranquilla, Colombia, we can now perform select manufacturing and light assembly in the U.S., which will enhance client service and create certain cost efficiencies."
Glasswall was founded in 2002 by Ugo Colombo, a south Florida residential and commercial real estate developer. In 1986, Mr. Colombo founded CMC Group, a fully-integrated real estate development company focused on residential, commercial, and retail properties. CMC Group has developed more than 10 million square feet of commercial and luxury residential real estate, including landmark projects in Brickell, South Beach, Aventura, Miami Beach, and Coconut Grove.
Mr. Daes continued, "From a business development perspective, we expect that Tecnoglass will supply impact-resistant windows and doors for four south Florida properties being developed by CMC Group. These commercial and residential projects, which will be similar in scope to CMC Group's previously-developed properties, are expected to commence at various times during 2015, 2016, and 2017. We anticipate entering into our initial agreement with CMC Group by mid-2015."
Mr. Colombo stated, "Tecnoglass has been a respected competitor of Glasswall for many years. I have come to know the quality of its products and service, and the vision of its management team. I am pleased to have become a shareholder, and look forward to a long, mutually-beneficial working relationship."
Mr. Daes concluded, "Through CMC Group, Ugo Colombo has helped redefine the south Florida skyline and rejuvenate communities. We are excited at the prospect of working together."
Tecnoglass is the #1 architectural glass transformation company in Latin America, providing hi-spec glass, windows and aluminum products for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, Tecnoglass operates out of a 2.3 million square foot vertically-integrated, state-of-the-art manufacturing complex that provides easy access to the Americas, the Caribbean, and the Pacific. Tecnoglass sells to more than 800 customers in North, Central and South America, with the United States accounting for approximately 36% of Company revenues in 2013. Tecnoglass's tailored, high-end products are found on some of the world's most distinctive properties, including the El Dorado Airport (Bogota), Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower (Miami), and The Woodlands (Houston). For more information, please visit www.tecnoglass.com
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's 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's 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, changes in assumptions or otherwise.