Rossari Biotech completes acquisition of 1st tranche of 76% stake of Tristar

Rossari Biotech has completed the acquisition of the first tranche of 76% of the equity share capital (on a fully diluted basis) of Tristar Intermediates on Wednesday, 1 September 2021.

In July this year, the board of Rossari Biotech approved the acquisition of Tristar Intermediates. 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 balance sheet and doesn't intend to raise any debt for this acquisition," the company said in a statement issued on 17 July 2021.

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 acquisition provides Rossari with enhanced portfolio of products, stronger presence in new & untapped international markets and access to newer technologies.

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.

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.

Rossari Biotech reported a 58.4% jump in consolidated net profit to Rs 24.54 crore on a 111.1% surge in net sales to Rs 231.11 crore in Q1 FY22 over Q1 FY21.

Rossari Biotech is a speciality-chemicals manufacturer providing intelligent and sustainable solutions for customers across industries.

Shares of Rossari Biotech (RBL) lost 0.77% to Rs 1,411.90 on BSE.

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