Rossari Biotech climbs over 5 per cent on acquisition of Tristar Intermediates

Rossari Biotech Limited, a speciality chemicals manufacturer announced on Friday that its board of directors has approved the acquisition of Tristar Intermediates Private Limited. 

Rossari will be acquiring 100 per cent of the equity share capital of Tristar Intermediates, as per the agreement and subject to customary closing conditions. Around 76 per cent of the equity share capital will be acquired on the closure of the transaction whereas 24 per cent will be acquired in the next three years. The transaction will be bearing a total enterprise value of Rs 120 crore. This investment will be funded by the company via cash on the balance sheet and is not inclined to raise any debt for the acquisition.  

This transaction will blend two high potential companies within the chemical speciality space. With this acquisition, Rossari will enhance its portfolio of products, establish a stronger presence in new & untapped international markets and also, have extended access to newer technologies. Additionally, Rossari welcomes on board Tristar Intermediates’ four experienced promoters bearing entrepreneurial expertise across technical and marketing functions, who will drive the business for at least the next three years. Rossari strives to tighten its market position as a preferred solutions provider in the speciality chemicals space in India through Tristar Intermediates complementary cultures & business models.  

Rossari Biotech was started in 2003 as a partnership firm titled, Rossari Labtech and was incorporated into a company in 2009 and renamed Rossari Biotech. The company is engaged in chemical manufacturing with a focus on the speciality chemicals industry. 

Reacting to the news, the shares of Rossari Biotech Ltd zoomed 5.73 per cent and were trading at Rs 1,235.30 per share at 9.54 am on Monday.