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.

Axcelus Finserv Private Ltd was the sole adviser to Rossari for the transaction. Shardul Amarchand Mangaldas was the legal counsel and KPMG assisted in financial and tax due diligence. Wodehouse Capital was the financial adviser to Unitop Chemicals.

“The acquisition of the shares of Unitop is in line with the company's strategy to establish its leadership in the manufacturing of speciality chemicals as part of our inorganic growth strategy. The company has identified Unitop as a suitable acquisition target because it is a financially healthy organisation with a product range that falls within its four pillars of chemistry (surfactants, acrylics, silicones and enzymes),” it said.

“Unitop provides an opportunity for synergies in manufacturing and marketing that can be highly value accretive over the long run,” it added.

Set up in 1980, Unitop is a manufacturer of surfactants, emulsifiers and speciality chemicals. The company had posted a turnover of ₹280.6 crore for fiscal year 2020, an increase from ₹232.8 crore recorded a year ago, and ₹205.3 crore posted in FY18. Mumbai-headquartered Unitop has three manufacturing plants in India, with a total production capacity of 86,000 mta.

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