Tecnoglass Inc. (NasdaqCM:TGLS) entered into an agreement to acquire 25.8% stake in Vidrio Andino S A from Compagnie de Saint-Gobain S.A. (ENXTPA:SGO) for $45 million on January 11, 2019. The purchase price is expected to be funded with cash of approximately $34.1 million plus land contributed at an aggregate value of approximately $10.9 million. Tecnoglass intends to fund the cash portion of the transaction with cash on its balance sheet and readily available lines of credit, while maintaining a pro forma net leverage position in line with recent quarters.

Vidrio Andino has annualized sales of approximately $100 million. The transaction is expected to be completed in the second quarter of 2019. The acquisition will be consummated on or before May 3, 2019.

The initial $45 million investment into the joint venture from Tecnoglass will be used to fund a portion of the construction cost for the new manufacturing facility near Barranquilla, which is expected to total approximately $160 million through 2022. Hernando A. Padilla of Philippi Prietocarrizosa Ferrero Du & Uria acted as legal advisor to Tecnoglass, whereas Jaime E. Cubillos Porto of Posse Herrera Ruiz acted as legal advisor to Compagnie de Saint-Gobain.