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 per cent of the equity capital of Unitop Chemicals, the company said in a statement. The company further stated that 65 per cent of the equity share capital will be acquired upon closure of the transaction, and the balance 35 per cent over the next two years. The total consideration for the acquisition of a 100 per cent equity stake is Rs 421 crore. The funds for this acquisition will be through cash on the balance sheet.
Rossari Biotech Limited has agreed to acquire Unitop Chemicals Private Limited equitybulls.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from equitybulls.com Daily Mail and Mail on Sunday newspapers.
Rossari Biotech inks pact to acquire Unitop Chem for ₹421 cr in cash
June 02, 2021
The acquisition will be in multiple tranches
Speciality chemicals manufacturer Rossari Biotech has entered into an agreement to acquire Unitop Chemicals Private Ltd in multiple tranches for ₹421 crore in cash. According to the contours of the deal, the company will acquire about 65 per cent stake in the first tranche, which is expected to be completed by the second quarter of FY22. The remaining part of the acquisition is expected to close in 2023-2024, Rossari Biotech said in a regulatory filing.
The deal price (₹421 crore) is payable in multiple tranches, and subject to certain post-completion adjustments. The company plans to fund the investment through cash on balance sheet and doesn’t intend to raise any debt, it added.
The Board of Rossari Biotech on 02 June 2021 has approved the acquisition of Unitop Chemicals. 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 Rs. 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 Rs. 300 crore to augment the strength of its balance sheet.