Spanish glassmaker Vidrala has executed a letter of intent for the acquisition of a controlling stake in Portuguese container manufacturer Santos Barosa Vidros.

Santos Barosa manufactures and sells glass containers and owns a major production facility located in Marinha Grande, Portugal.

The company produces around 400,000 tonnes of glass a year, with an estimated turnover for 2017 ranging between €130 and €135 million, and an estimated operating result, EBITDA, ranging between €32 and €34 million.

The agreed transaction price amounts to a value equivalent to €250 million ($280.2 million), approximately. The figure could vary moderately depending on the indebtedness assumed at the transaction closing.

The deal is expected to close during the third quarter of 2017.

Vidrala’s board of directors and the management team said they had admired Santos Barosa’s quality of business, grounded in modern manufacturing facilities and solid commercial relationships with its clients.