Rossari to acquire Tristar Intermediates


 Rossari Biotech Limited (Rossari, Company), a Speciality Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries, today announced that its Board of Directors has approved the acquisition of  Tristar Intermediates Pvt. Ltd. (Tristar Intermediates, company). 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 crores. Rossari plans to fund the investment through cash on the balance sheet and doesn’t intend to raise any debt for this acquisition.  

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 synergistic acquisition provides Rossari with an enhanced portfolio of products, a stronger presence in new & untapped international markets and access to newer technologies.  Through the transaction, the Company also welcomes on-board Tristar Intermediate’s four experienced promoters with proven entrepreneurial expertise across technical & marketing functions, who will continue driving this business for at least the next three years. Rossari and  Tristar Intermediate’s complementary cultures and business models will together strengthen  and consolidate Rossari’s market position as a preferred solutions provider in the Speciality  Chemicals space in India. 

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. With a superior presence in Personal Care and Home  Care segments, the company’s expansive product range also has applications across  diverse industries such as Pharmaceuticals, Textiles, Paints, Automotive, Agro-chemicals  and others. Tristar Intermediates has manufacturing facilities at Sarigam (Vapi), Gujarat,  India with a total capacity of 15,000 MTPA.  

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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.  

Commenting on the business update, in a joint statement, Mr. Edward Menezes,  Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director,  said,  “We are pleased to announce the acquisition of Tristar Intermediates, which is a strategic  and important milestone for us. 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.”