Rossari Biotech Ltd, a speciality chemicals manufacturer, on Sunday announced the acquisition of Tristar Intermediates at an enterprise value of Rs 120 crore. The board of the company has approved the acquisition of Tristar Intermediates, a move which will help Rossari Biotech expand its product portfolio, primarily in the personal care segment, a joint statement said.
As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100 per cent equity share capital of Tristar Intermediates, it added. "76 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 Rs 120 crore," it said.
Rossari plans to fund the investment through cash on the balance sheet and doesn't intend to raise any debt for this acquisition. Established in 1998, Tristar Intermediates operates in the field of Preservatives, Aroma Chemicals, and Home & Personal Care Additives. It has a manufacturing facility at Sarigam, Gujarat, India with a total capacity of 15,000 MTPA and had a turnover of Rs 110.5 crore.While commenting on the development, Rossari Biotech Promoter & Executive Chairman Edward Menezes and Promoter & Managing Director Sunil Chari in a joint statement 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. Rossari Biotech, a BSE listed firm, is a Speciality-Chemicals manufacturer offers solutions for home, personal care and performance chemicals (HPPC), Textile speciality chemicals and animal health and nutrition (AHN).