M&A

M&A

Rossari Biotech to acquire specialty chemicals firm Unitop Chem for Rs.421-Cr

Press Release  

Publicly-listed speciality chemicals manufacturer Rossari Biotech Ltd is to acquire a 100% stake in fellow Mumbai-based Unitop Chemicals Pvt Ltd for INR 421 crore. It will acquire 65% of the equity share capital upon closure of the transaction, and the balance 35% over the next two years. Rossari plans to fund the investment through cash on the balance sheet and doesn't intend to raise any debt for this acquisition. Axcelus Finserv 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. Unitop is a supplier of surfactants, emulsifiers and specialty chemicals to large domestic and international companies. It has three manufacturing sites 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 FY20, Unitop Chemicals' revenues stood at INR 280 crore, with adjusted EBITDA of INR 43 crore. The company has zero net debt.