Rossari to acquire Unitop Chemicals

The Board of Directors at Rossari Biotech Limited have approved the acquisition of Unitop Chemicals Private Ltd (Unitop Chemicals, company). As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100% of the equity capital of Unitop Chemicals. 65% of the equity share capital will be acquired upon closure of the transaction, and the balance 35% over the next two years. The total consideration for the acquisition of 100% equity stake is ₹421 crore. 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, Rossari concluded a preferential issue of equity aggregating to ₹300 crore to augment the strength of its balance sheet.

This acquisition brings further dynamics to Rossari's growth story. It brings synergies and complementary dimensions such as expanded product portfolio, presence in adjoining areas of speciality 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. The combination of Unitop Chemicals with Rossari will augment the quality and acceleration of the Company's growth going forward.

Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & MD, 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 enable this initiative to 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, a 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.