Rossari Biotech to acquire Tristar Intermediates for Rs 120cr

Rossari Biotech, a Mumbai-based specialty chemicals manufacturer, has agreed to acquire Tristar Intermediates in a deal that values the latter at INR 120 crores.

Founded in 1998, Tristar Intermediates is engaged in manufacturing preservatives, aroma chemicals, and home and personal care additives at its distillation facilities.

Tristar Intermediates, which is based in Thane, Maharashtra, caters to various companies across India, Europe, the US, and Far East countries.

It is said to have a superior footprint in personal care and home care segments. The firm’s product range also has applications across diverse industries that include pharmaceuticals, paints, textiles, agro-chemicals, and automotive among others.

Tristar Intermediates’ manufacturing facilities are located in Sarigam, Gujarat. The total capacity of the facilities is 15,000 MTPA.

For the fiscal year 2021, the company’s revenues were INR 110.5 crores, while the profit after tax was INR 10.4 crore.

Rossari Biotech to acquire Tristar Intermediates for Rs 120cr. Photo courtesy of LEEROY Agency from Pixabay.

Rossari Biotech said that the deal combines two high-potential firms within the specialty chemical segment. The company stated that the combination of capabilities will add scale, give cross-selling opportunities, and expedite its growth, while substantially boosting value creation in the longer term.

Edward Menezes – Promoter and Executive Chairman, and Sunil Chari – Promoter ad Managing Director of Rossari Biotech 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 acquisition meets all operational & financial criteria laid down by our Board. 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.”

As per the terms of the transaction and subject to customary closing conditions, Rossari Biotech will initially acquire a 76% stake in Tristar Intermediates and the remaining 24% in the next three years.

Recently, Rossari Biotech signed a deal worth INR 421 crores to acquire Unitop Chemicals, a Mumbai-based supplier of emulsifiers, surfactants, and specialty chemicals.