Chemicals specialist Rossari Biotech said on Friday that it will acquire a 100 percent stake in Unitop Chemicals Pvt Ltd for Rs 400 Crore.
The specialty chemicals company said: "The merger of Unitop Chemicals with Rossari will increase quality and accelerate the growth of the company in the future."
Rossari will initially acquire 65% of the shares of Unitop Chemicals and the remaining 35% over the next two years.
Rossari said it plans to finance the investment through cash on the balance sheet and does not intend to incur debt for this acquisition. In April, the company completed a Rs 300 crore preferred share issue to further strengthen its balance sheet.
Unitop Chemicals is a leading supplier of surfactants, emulsifiers, and specialty chemicals to a diverse customer base that includes large national and international companies. The company has three plants in India with a capacity of 86,000 tons per year.
In 2019-20, Unitop Chemicals had revenue of Rs 280 crore and an adjusted operating profit of Rs 43 crore. In 2020-21, the estimated revenue was over Rs 300 crore.
Also Read: Infosys begins internal probe after SEBI order on two employees involved in insider trading