PAG to invest Rs 1,054 cr for majority stake in contract manufacturing firm

PAG, an Asia-focused private equity firm, said on Thursday it will acquire a controlling stake in Acme Formulation, a contract development and manufacturing outsourcing (CDMO) company. PAG will invest $145 million (Rs 1,054 crore)  for the stake.

Vishal Shah will retain a significant minority stake in Acme and continue as Managing Director and CEO.

“Acme has a great reputation for high-quality manufacturing, as well as a leading presence in attractive markets including sterile injectables,” said Nikhil Srivastava, partner and managing director, head of India private equity at PAG.

“PAG, with its strong track record in pharmaceutical investments, is the ideal partner to help Acme grow even further in the years ahead,” said Viral Shah, founder, CEO and Managing Director of Acme, said:

PAG is investing out of its $6 billion Asia fund. Following the Acme acquisition, PAG will have completed investments of more than half a billion dollars in India. PAG’s deals include investments in Edelweiss Wealth Management, one of India’s largest wealth advisory firms, and Anjan Drug, a leading manufacturer of active pharmaceutical ingredients (APIs).