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Rossari Biotech to buy Tristar Intermediates for 120 crore

Rossari Biotech plans to fund the investment through cash on its balance sheet and doesn’t intend to raise any debt for this acquisitionPremium
Rossari Biotech plans to fund the investment through cash on its balance sheet and doesn’t intend to raise any debt for this acquisition

  • 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

MUMBAI : Mumbai: Rossari Biotech Ltd, a speciality chemicals manufacturer, on Sunday said its board of directors has approved the acquisition of Tristar Intermediates Pvt. Ltd, the company said in a statement.

According to the agreement and subject to customary closing conditions, Rossari will be acquiring 100% of the equity share capital of Tristar Intermediates. Seventy-six per cent 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 120 crore.

Rossari plans to fund the investment through cash on its balance sheet and doesn’t intend to raise any debt for this acquisition, the statement said.

“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 and untapped international markets and access to newer technologies," the statement said.

The promoters of Tristar will continue driving the business for at least next three years.

Tristar Intermediates established in the year 1998, is engaged in the manufacturing of preservatives, aroma chemicals, and home and personal care additives. Headquartered in Thane, Maharashtra, Tristar Intermediates is a preferred supplier to various reputed companies and MNCs across India, Europe, US, and Far East countries. While it has a strong presence in personal care and home care segments, the company’s expansive product range also has applications across diverse industries such as pharmaceuticals, textiles, paints, automotive, agro-chemicals, and others. Tristar Intermediates has manufacturing facilities at Sarigam (Vapi), Gujarat, with a total capacity of 15,000 MTPA.

In FY21, Tristar Intermediate’s revenues stood at 110.5 crore, with Ebitda at 15.6 crore, Ebitda margins at 14.1%, and PAT at 10.4 crore. In FY21, personal care segment contributed to 60% of revenues and exports accounted for 53% of revenues.

“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," said Edward Menezes, promoter and executive chairman, and Sunil Chari, promoter and managing director of Rossari Biotech

Headquartered in Mumbai, Rossari operates two manufacturing facilities at Silvassa and Dahej. The company offers tailor-made solutions for home, personal care and performance chemicals, textile speciality chemicals and animal health and nutrition.

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