Asia focused private equity firm PAG said it has agreed to acquire a controlling stake in Acme Formulation Pvt Ltd which is into contract development and manufacturing outsourcing of complex pharma products.
PAG will invest $145 million (Rs 1,054 crore). Citadel Management Consulting was the exclusive advisor to Acme on this transaction.
Earlier this week, VCCircle had exclusively reported that this development was about to take place.
Nikhil Srivastava, partner and managing director, head of private equity at PAG, said that Acme had a presence in “attractive markets such as sterile injectables”. He added: “We are excited to partner with Acme’s inspiring founder Viral Shah to further accelerate the company’s growth.”
PAG is currently investing out of its $6 billion Asia III buyout fund which has displayed a strong commitment to the Indian market since 2019, the investor said.
Following the Acme acquisition, PAG will have completed investments of more than half a billion dollars in India. Latest deals include investments in Edelweiss Wealth Management and Anjan Drug, a manufacturer of active pharmaceutical ingredients (APIs).
“PAG, with its strong track record in pharmaceutical investments, is the ideal partner to help Acme grow further in the years ahead,” Shah, CEO and managing director of Acme, said.
Founded in 2005, Acme provides contract development and manufacturing services to major Indian and global pharmaceutical companies. The firm focuses on products such as sterile injectables, hormones, and other complex oral solid formulations.
It exports to more than 40 countries. Shah will retain a significant minority stake in the company and continue as managing director and CEO of Acme, the firm said.