Rossari Biotech Limited, a Speciality Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries, announced that its Board has approved 100% acquisition of Unitop Chemicals Private Limited for Rs. 421 crore ($57.7 million).
As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100% of the equity capital of Unitop Chemicals in two steps. 65% of the equity share capital will be acquired upon closure of the transaction and the balance 35% over the next two years.
Rossari plans to fund the investment through cash on its balance sheet and doesn’t intend to raise any debt for this acquisition.
The deal will help Rossari expand its product portfolio and dive deeper into the speciality chemical segments, providing it larger international and domestic exposure.
“The combination of Unitop Chemicals with Rossari will augment the quality and acceleration of the company’s growth going forward,” Rossari said.
“We are delighted to accelerate the growth momentum at Rossari. Unitop Chemicals is a natural fit with our operations and brings with it immense synergies and complementary growth dimensions,” Edward Menezes, promoter and executive chairman and Sunil Chari, promoter and managing director said.
“We are excited to drive faster growth with larger revenues, greater technological capabilities, stronger spread of market presence, well-aligned operating segments, and most importantly, a more experienced talent pool with augmented capabilities”, Menezes and Chari added.
Unitop is one of India’s oldest manufacturers of specialty surfactants, emulsifiers, and other specialty chemicals. It also exports to over 25 countries. In the fiscal year 2020, Unitop Chemicals’ revenues stood at Rs. 280 crores ($38.3 million), with adjusted EBITDA at Rs. 43 crore ($5.9 million). Its 2021 unaudited estimated revenues stood at over Rs. 300 crores ($41.1 million).
Unitop Chemicals has a total capacity of 86,000 MTPA. The company’s revenue mix is as follows- Agrochemical (60%); Oil & Gas (10%); and Textile, Pigments, Leather, Paper & Pulp and others (30%)
The company has a healthy balance sheet profile with zero net debt, Rossari said. Wodehouse Capital acted as the financial advisor to Unitop Chemicals, whereas Axcelus Finserv Private Ltd advised Rossari and Shardul Amarchand Mangaldas acted as its legal counsel.