Rossari Biotech to buy 76% stake in Tristar for ₹120 cr

Rossari Biotech Ltd, a speciality chemicals maker, will acquire Tristar Intermediates Pvt. Ltd in cash for an enterprise value of ₹120 crore.

Rossari’s board of directors has approved the deal that will entail the company first purchasing 76% stake in Tristar, and the balance over the next three years. Rossari said in a statement on Sunday that it does not plan to raise any debt for the 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,” according to the statement.

“The synergistic acquisition provides Rossari with enhanced portfolio of products, stronger presence in new and untapped international markets and access to newer technologies.” Post the acquisition, the promoters of Tristar will continue to run the business for at least three years.

Established in 1998, Tristar manufactures preservatives, aroma chemicals, and home and personal care additives. Headquartered in Thane, Maharashtra, the company has customers across India, Europe, the US and Far East.

It has a presence in personal care and home care segments, while also catering to industries such as pharmaceuticals, textiles, paints, automotive and agro-chemicals. Tristar has manufacturing facilities at Sarigam (Vapi), Gujarat, with a total capacity of 15,000 MTPA.

In FY21, Tristar recorded a net profit of ₹10.4 crore on revenue of ₹110.5 crore.