Rossari Biotech to Acquire Tristar Intermediates for Rs 120 Cr

Rossari Biotech Limited, a Indian speciality chemicals manufacturer, 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 ($16 million). 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, Rossari said.

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, the company said.

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.”

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.

Headquartered in Thane, Maharashtra, Tristar Intermediates is a preferred supplier to various reputed companies and MNCs across India, Europe, USA and Far East countries. With a superior 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, 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. In FY2021, Personal Care segment contributed to ~60% of revenues and Exports accounted for ~53% of revenues.