Rossari acquires Tristar too
Flush with funds from its IPO, Indian speciality chemicals manufacturer Rossari is to make its second acquisition of in as many months. Following on from the $57.7 million acquisition of Unitop Chemicals in June, it has agreed to acquire Tristar Intermediates in two tranches of 76% now and 24% in three years’ time. The total enterprise value of the transaction is $16 million. Tristar’s current management will stay on for at least three years.
“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,” Rossari stated.
Tristar makes preservatives, aroma chemicals, and home and personal care additives for the global market, with exports accounting for 53% of sales. Personal care accounted for about 60% of its sales of $14.8 million in the 2020-1 financial year, but its products are also used in the pharmaceuticals, textiles, paints, automotive, agrochemicals, and other markets. Its three manufacturing facilities in Gujarat have total capacity of 150,000 tonnes/year.