Rossari Biotech yesterday announced that its Board of Directors has approved the acquisition of Tristar Intermediates. As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100 per cent of the equity share capital of Tristar Intermediates, Rossari Biotech informed in a statement.
According to the statement, 76 per cent of the equity share capital will be acquired upon closure of the transaction, and the remaining 24 per cent over the next three 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.
With this partnership, the blend of capabilities of the two companies 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, stronger presence in new and untapped international markets and access to newer technologies, mentioned the statement.
It also said that through the transaction, the company also welcomes on-board Tristar Intermediate’s four experienced promoters with entrepreneurial expertise across technical and marketing functions, who will continue driving this business for at least the next three years, it added.
Commenting on the business update in a joint statement, Edward Menezes, Promoter and Executive Chairman, and Sunil Chari, Promoter and Managing Director, Rosari Biotech, said, “We are pleased to announce the acquisition of Tristar Intermediates…..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 and 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.”