The Board of Directors of Rossari Biotech Limited, a Speciality Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries, 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 crore. 

Rossari plans to fund the investment through cash on the balance sheet and doesn’t intend to raise any debt for this acquisition. 

Tristar Intermediates 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. 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. 

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, 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 and marketing functions, who will continue driving this business for at least 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. 

In the fiscal year 2021, Tristar Intermediate’s revenues stood at Rs. 110.5 crore, with EBITDA at Rs. 15.6 crore, EBITDA margins at 14.1%, and PAT at Rs. 10.4 crore. In FY2021, Personal Care segment contributed to around 60% of revenues and exports accounted for around 53% of revenues. 

Commenting on the business update, in a joint statement, Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & Managing Director 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 technology know-how will also drive business efficiencies." 

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.”