Colombian architectural glass, windows, and associated aluminium products maker Tecnoglass Inc. plans to buy a minority stake in Vidrio Andino, a Colombia-based unit of French construction materials maker Saint-Gobain (SG), in a joint venture deal.
Tecnoglass will pay $45 million for the minority stake in Vidrio Andino, which is expected to be funded with cash of about $34 million plus land contributed at around $11 million.
With this joint venture, Tecnoglass will boost its vertical integration strategy by guaranteeing stable long-term float glass supply and improving purchasing economics.
Vidrio Andino also plans to construct a new glass manufacturing facility in Galapa. The transaction is expected to be completed in the second quarter of 2019.