Rossari Biotech acquires Unitop Chemicals for Rs 4.21 bn

Rossari Biotech Limited – a specialty chemicals
manufacturer providing intelligent and sustainable
solutions for customers in industries like for home &
personal care, textiles, animal health and nutrition, etc
– has agreed to acquire Unitop Chemicals Pvt Ltd for Rs
4.21 billion. As per the agreement and subject to
customary closing conditions, Rossari will be acquiring
100% of the equity capital of Unitop Chemicals. While
65% of the equity share capital will be acquired upon
closure of the transaction, and the balance 35% over the
next two years. Rossari plans to fund the investment
through cash on balance sheet and doesn’t intend to raise
any debt for this acquisition. In April 2021, Rossarileading supplier of surfactants, emulsifiers and specialty
chemicals to a diversified customer base including large
domestic and international companies. It has a strong
product portfolio with superior presence in the
agrochemicals and oil & gas segment. The company’s key
expertise is centered on surfactants, which is one of
Rossari’s four core chemistries. Unitop Chemicals has
three manufacturing sites in India with a total capacity of
about 86,000 MTPA and its key facility in Dahej is at close
proximity to Rossari’s existing facility.

In the fiscal year 2020, Unitop Chemicals’ revenues
stood at Rs 2.80 billion, with adjusted EBITDA at Rs 430
million. FY2021 unaudited estimated revenues stood at
over Rs 3 billion. The company has a healthy balance
sheet profile with zero net debt. Unitop Chemicals’
solutions are sold across 25 countries, with exports
accounting for 30% of revenues in FY2020.

In a joint statement, Edward Menezes, Promoter &
Executive Chairman, Rossari, and Sunil Chari, Promoter &
Managing Director, Rossari, said, “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 meet the parameters of operational
and financial discipline outlined by our Board. We are
excited to drive faster growth with larger revenues,
greater technological capabilities, stronger spread of
market presence, well-aligned operating segments, and
most importantly, a more experienced talent pool with
augmented capabilities. I will take this opportunity to
thank the entrepreneurs behind Unitop Chemicals to
have built a high-quality business, which I am sure
together with us will create incremental value for all our
stakeholders.”
Axcelus Finserv Private Limited was the sole advisor
to Rossari for the transaction. Shardul Amarchand
Mangaldas acted as the legal counsel and KPMG assisted
in financial and tax due diligence.