“Combination of Unitop Chemicals with Rossari will augment the quality and acceleration of the company’s growth going forward,” the specialty chemicals company said.
Rossari will initially acquire a 65 per cent equity stake in Unitop Chemicals, and the remainder 35 per cent over the next two years.
Rossari said it plans to fund the investment through cash on balance sheet and does not intend to raise any debt for this acquisition. In April, the company had concluded a preferential issue of equity of Rs 300 crore to augment the strength of its balance sheet.
Unitop Chemicals is a leading supplier of surfactants, emulsifiers and specialty chemicals to a diversified customer base including large domestic and international companies. The company has three manufacturing plants in India with a capacity of 86,000 tonnes per annum.
In 2019-20, Unitop Chemicals’ revenues had stood at Rs 280 crore and adjusted operating profit at Rs 43 crore. In 2020-21, estimated revenues were at over Rs 300 crore.
