Terms of the transaction were not disclosed.
Primary among the assets acquired by Tecnoglass are: approximately $70 million in RC Aluminum backlog for high-rise projects in south Florida, all of which is expected to begin shipping by year-end 2014; the right to complete a number of RC Aluminum's contracted projects in south Florida with an estimated value of approximately $12 million; and Miami-Dade Notice of Acceptance (NOA) for more than 50 products manufactured and sold by RC Aluminum.
The acquisition is expected to have a neutral impact to Tecnoglass's earnings in 2014, but should be accretive beginning in 2015.
José M. Daes, Chief Executive Officer of Tecnoglass, commented, "We view this as an exceptional transaction for Tecnoglass. RC Aluminum was a primary competitor in south Florida for nearly 25 years, and we grew to respect their products, service and reputation. The $70 million of acquired backlog, as well as any products required to complete RC Aluminum's current projects, will be fulfilled at Tecnoglass's manufacturing facilities in Barranquilla, Colombia. The acquired NOAs, one of most demanding certifications in our industry, will broaden our portfolio of hurricane-resistant products."
Tecnoglass has also hired Mr. Raul Casares, the Founder and President of RC Aluminum and a 50-year industry veteran, as Sales Director for south Florida.
Mr. Daes said, "Raul is an extremely well-respected executive in our industry, and we welcome him to Tecnoglass. We expect him to continue to leverage his industry knowledge and network of contacts in order to further expand Tecnoglass's presence in the south Florida high-rise construction market."
Tecnoglass is a leading manufacturer of hi-spec, architectural glass and windows for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, Tecnoglass operates out of a 1.2 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.