Rossari Biotech Limited, a SpecialityChemicals manufacturer providing intelligent and sustainable solutions for customers across industries, has announced that its Board of Directors has approved the acquisition of Tristar Intermediates Pvt. Ltd.
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 3 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.
A company 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 & untapped international markets and access to newer technologies.”
“Through the transaction, the Company also welcomes on-board Tristar Intermediate’s four experienced promoters with proven entrepreneurial expertise across technical & marketing functions, who will continue driving this business for atleast next three years,” the statement further informed.
Commenting on the business update, in a joint statement, Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, said, “We are pleased to announce the acquisition of Tristar Intermediates, which is a strategic and important milestone for us. 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 acquisition meets all operational & financial criteria laid down by our Board. The complementary heritage of Rossari and Tristar Intermediates will allow for a smooth integration to the benefit of our stakeholders, customers and employees, in the coming months.”
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