Tristar Intermediates acquisition to help personal care segment: Rossari Biotech

Rossari Biotech, a speciality chemicals manufacturer, is in focus as the company announced that it will acquire 100 percent of the equity share capital of Tristar Intermediates for a total enterprise value of Rs 120 crore. It is agreed that 76 percent of the equity share capital will be acquired upon closure of the transaction and the balance 24 percent over the next three years.

Sunil Chari, Promoter & Managing Director, Rossari Biotech, specified that they already held 60 percent share in Tristar and have now bought the balance 40 percent because they see good growth opportunity for Rossari’s personal care segment in the future.

With regards to funding this acquisition, he said that the company had raised Rs 300 crore via preferential equity in April and have cash on the balance sheet to fund both the Unitop and Tristar acquisitions. They would not require to take any debt, he said, while adding that both Tristar and Unitop will be focusing on exports. He expects exports to be three times higher after the said consolidation with Tristar and Unitop get completed.