The strategic acquisition adds scale and brings business synergies
Rossari Biotech, a speciality chemicals manufacturer that provides intelligent and sustainable solutions for customers across industries, announced that its Board of Directors has approved the acquisition of Tristar Intermediates (Tristar Intermediates, company). As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100 per cent of the equity share capital of Tristar Intermediates. 76 per cent of the equity share capital will be acquired upon closure of the transaction, and the balance 24 per cent 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 the 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 an enhanced portfolio of products, a stronger presence in new and 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 and marketing functions, who will continue driving this business for at least the next three years. 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.
Edward Menezes, Promoter & Executive Chairman and Sunil Chari, Promoter and MD, 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 technological know-how will also drive business efficiencies. The acquisition meets all operational and 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.”