Rossari Biotech announced that its board of directors has approved the acquisition of Tristar Intermediates.
As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100% of the equity share capital of Tristar Intermediates. 76% of the equity share capital will be acquired upon closure of the transaction, and the balance 24% over the next three years.
The total enterprise value of the transaction is Rs. 120 crores. Rossari plans to fund the investment through cash on balance sheet and doesn't intend to raise any debt for this acquisition.
The transaction brings together two high-potential companies within the speciality chemical space. The blend of capabilities will add scale, provide cross-selling opportunities, and accelerate growth for Rossari, while significantly enhancing value creation in the longer term.
The synergistic acquisition provides Rossari with enhanced portfolio of products, stronger presence in new & untapped international markets and access to newer technologies.
Rossari and Tristar Intermediate's complementary cultures and business models will together strengthen and consolidate Rossari's market position as a preferred solutions provider in the Speciality Chemicals space in India.
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Tristar Intermediates established in the year 1998, is one of the prominent companies in India in the field of Preservatives, Aroma Chemicals, and Home & Personal Care Additives with high-tech distillation facilities. Tristar Intermediates has manufacturing facilities at Sarigam (Vapi), Gujarat, India with a total capacity of 15,000 MTPA.
In the fiscal year 2021, Tristar Intermediate's revenues stood at Rs. 110.5 crore, with EBITDA at Rs. 15.6 crore, EBIDTA margins at 14.1%, and PAT at Rs. 10.4 crore.
Commenting on the business update, in a joint statement, Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, said, The combined capabilities will provide a strong growth momentum and will enable us to expand further into the high-potential product categories of personal care and home care, among others. The addition of new international markets, cross-selling opportunities, talent, and technology know-how will also drive business efficiencies.
The announcement was made on Saturday, 17 July 2021. Shares of Rossari Biotech shed 0.09% to settle at Rs 1168.35 on Friday, 16 July 2021.
Rossari Biotech is a speciality chemicals manufacturer providing intelligent and sustainable solutions for customers across industries. The company offers tailor-made solutions for Home, Personal Care and Performance chemicals (HPPC), Textile speciality chemicals and Animal Health and Nutrition (AHN).
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