Tecnoglass Completes $35 Million USD Payment Obligation for 2017 GM&P Acquisition
Barranquilla-based window and glass maker Tecnoglass Inc. has fully completed its payment obligations related to its $35 million USD acquisition of Giovanni Monti and Partners Consulting and Glazing Contractors, Inc. (GM&P) last year.
GM&P, a glazing and consulting contractor in Miami that Tecnoglass had worked with for years, was cited by the company as a strategic purchase as the company pushed to strengthen its physical presence in the United States, which is its largest sales market.
The original agreement was signed in March 2017 and followed soon after Technoglass’ acquisition of E.S. Windows, LLC, another Miami company that was purchased, for $13 million USD, with an eye on vertical integration in the United States.
Tecnoglass initially paid $6 million USD of the total $35 million USD price for GM&P within the first 60 days of the agreement.
The remaining $29 million USD payment was made last week on May 4, according to the company, with $6 million USD in cash, $13 million USD in stock, and the execution of a $10 million USD junior subordinated note.
READ MORE: Tecnoglass Acquires Miami-Based Glazing Company for $35 Million USD
The $13 million USD was the equivalent of just under 1.3 million Tecnoglass ordinary shares, which represented “a 23% premium over the last sale price of the TGLS ordinary shares on the date of payment,” according to the company.
Tecnoglass CEO José M. Daes said that this payment structure “preserves significant financial flexibility to support our growth objectives” and praised the integration of GM&P as a acquisition that has “exceeded our initial expectations and contributed meaningfully to our U.S. revenue and backlog growth trajectory during the past 14 months.”
Photo: Tecnoglass international headquarters, seen here, are located in Barranquilla, Colombia. (Credit: Tecnoglass)