Speciality-Chemicals manufacturer Rossari Biotech on Wednesday announced the acquisition of Unitop Chemicals, a supplier of surfactants, emulsifiers, and specialty chemicals, for Rs 421 crore.
Rossari will be acquiring 100 percent of the equity capital of Unitop Chemicals, the company said in a statement.
The company further stated that 65 percent of the equity share capital will be acquired upon closure of the transaction, and the balance 35 percent over the next two years. The total consideration for the acquisition of a 100 percent equity stake is Rs 421 crore.
The funds for this acquisition will be through cash on the balance sheet. In April 2021, Rossari concluded a preferential issue of equity aggregating to Rs 300 crore to augment the strength of its balance sheet.
This acquisition will bring complementary dimensions to Rossari Biotech and help expand its product portfolio, presence in adjoining areas of specialty chemical segments, pooling together of related technologies, larger international exposure, better domestic market reach, well-experienced and competent talent pool, and increased end-user industry applications.
Unitop Chemicals has three manufacturing sites in India with a total capacity of 86,000 MTPA and its key facility in Dahej, Gujarat, is in close proximity to Rossari's existing facility.
"We are delighted to accelerate the growth momentum at Rossari. Unitop Chemicals is a natural fit with our operations and brings with it immense synergies and complementary growth dimensions. The acquisition and investment of capital to enable this initiative to meet the parameters of operational and financial discipline outlined by our board," Rossari Biotech promoter and executive chairman Edward Menezes and promoter and managing director Sunil Chari said in a joint statement.
The company is excited to drive faster growth with larger revenues, greater technological capabilities, a stronger spread of market presence, well-aligned operating segments, and most importantly, a more experienced talent pool with augmented capabilities, it added.
(Edited by : Jomy Jos Pullokaran)
First Published: IST