Grendene signed a non-binding memorandum of understanding with 3G Radar to create a joint venture to distribute and sell the Brazilian shoemaker’s products in certain foreign markets.

The two companies plan to sign a shareholder accord and a master distribution and franchise agreement (MFDA) within 90 days.

Under the terms set by the preliminary agreement, 3G Radar will own 50.1 percent of the joint venture and Grendene the remaining 49.9 percent. Over the 24 months following the incorporation of the joint venture, the two shareholders plan to invest an aggregate $100 million in the company in proportion to their stakes.

Grendene will have vetoing rights regarding some matters and there will be conditions attached to the sale of the two companies’ stakes in the joint venture, such as pre-emption rights. The MFDA will also establish the exclusivity of distribution rights for certain products in specific foreign markets as well as distribution targets and commercial terms.

Grendene warned that there is no guarantee that the transaction will complete successfully.

3G Radar is a Brazilian-based investment company founded in April 2013. It claims to be a long-term investor focusing in growth companies with high returns and cash flow generation perspectives.