Rossari Biotech to acquire specialty chemicals producer Unitop Chemicals

Rossari Biotech said that its board has sanctioned the acquisition of Unitop Chemicals, a Mumbai-based supplier of surfactants, emulsifiers, and specialty chemicals for INR 421 crores.

The chemical manufacturing company said that 65% of the equity share capital of Unitop Chemicals will be acquired following the closing of the deal, while the balance of 35% will be acquired during the next couple of years.

Rossari Biotech will fund the investment via cash on the balance sheet and has no plans to raise any debt for the acquisition.

The company said that the acquisition will create synergies and complementary dimensions that included an expanded portfolio of products, footprint in adjoining areas of speciality chemical segments, combining of related technologies, larger global exposure, and improved domestic market reach among others.

Rossari Biotech to acquire specialty chemicals producer Unitop Chemicals. Photo courtesy of LEEROY Agency from Pixabay.

Incorporated in 1980, Unitop Chemicals caters to a diversified customer base, which is said to include large domestic and international firms.

Rossari Biotech said that Unitop Chemicals has a robust product portfolio with a superior presence in the agrochemicals and oil and gas segment.

Unitop Chemicals’ primary expertise is centered on surfactants, which is one of the four core chemistries of Rossari Biotech.

The company has three manufacturing plants in India with a total capacity of nearly 86,000 MTPA. Its main facility in Dahej is in close proximity to Rossari Biotech’s existing factory.

Unitop Chemicals registered revenues of INR 280 crore in the fiscal year 2020.

Edward Menezes – Promoter and Executive Chairman and Sunil Chari – Promoter and Managing Director said: “We are delighted to accelerate the growth momentum at Rossari. Unitop Chemicals is a natural fit with our operations and brings with it immense synergies and complementary growth dimensions.

“The acquisition and investment of capital to enable this initiative meet the parameters of operational and financial discipline outlined by our Board. We are excited to drive faster growth with larger revenues, greater technological capabilities, stronger spread of market presence, well-aligned operating segments, and most importantly, a more experienced talent pool with augmented capabilities.”