India: Rossari Biotech to acquire Tristar Intermediates

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Rossari Biotech Ltd, a speciality chemicals manufacturer, on Wednesday announced that its board of directors has approved the acquisition of Tristar Intermediates Pvt. Ltd.

Rossari will be acquiring 100% equity of Tristar Intermediates. Of this, 76% equity will be acquired on closing the transaction, and the balance 24% over the next 3 years, the speciality chemicals company said.

The total enterprise value of the transaction is 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 transaction brings together two 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 synergistic acquisition provides Rossari with enhanced portfolio of products, stronger presence in new and untapped international markets and access to newer technologies,” Rossari said in a statement.

Tristar Intermediate’s promoters will continue to drive the business for at least the next three years. Incorporated in 1998, the company Tristar Intermediates’ business spans preservatives, aroma chemicals, and home and personal care additives with high-tech distillation facilities. It is a preferred supplier to companies across India, Europe, the US and far eastern countries. The Pune-based firm’s product range also has applications across pharmaceuticals, textiles, paints, automotive, and agro-chemicals. The company has manufacturing facilities at Sarigam (Vapi), Gujarat, India with a total capacity of 15,000 million tonne per annum (MTPA).

In fiscal year 2021, Tristar Intermediate’s revenue stood at 110.5 crore, with Ebitda of 15.6 crore, and 14.1% Ebitda margin. PAT was at 10.4 crore. Ebitda stands for earnings before interest, tax, depreciation, and amortization.

Edward Menezes, Rossari promoter and executive chairman, and Sunil Chari, Rossarti promoter and managing director, said in a joint statement that the acquisition of Tristar Intermediates is a strategic and important milestone for the company. “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,” Commenting on the business update, in a joint statement,” they added.

This article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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