Tecnoglass Acquires Miami-Based E.S. Windows for $13 Million USD
Tecnoglass Inc. has acquired the Miami-based E.S. Windows, LLC (ESW) for $13 million USD. The Florida company is the largest importer and reseller of the Barranquilla-based window and building materials maker’s products in the United States and also has ties to José M. Daes and Christian T. Daes, the brothers who serve as Tecnoglass chief executive officer and chief operating officer, respectively.
The purchase was made with $2.3 million in cash, 734,400 ordinary shares (with a value of $8.7 million USD at the closing price for Technoglass on December 2), and about $2.0 million “related to the assignment of certain account receivable assets,” according to the company.
“The consolidation of ESW marks another milestone in our efforts to generate shareholder value,” said José M. Daes. “This acquisition further enhances our vertically integrated operations and allows us to more efficiently serve our rapidly expanding U.S. customer base.”
The purchase price — an enterprise value about 5.0 times the 2015 normalized adjusted EBITDA of ESW — was determined through an independent valuation made by an unnamed investment bank. Cherry Bekaert LLP, a member within accounting and advisory network of Baker Tilly International, carried out the financial due diligence.
“We are especially pleased to complete this transaction on favorable terms to Tecnoglass, which we expect to be immediately accretive to earnings,” said José M. Daes. “With this transaction complete, we believe we are now better situated to continue growing revenues, strengthening our operations and investing capital wisely to produce attractive returns.”