PE firm PAG-led group to buy pharma firm Anjan Drug for undisclosed sum

Target company makes and supplies active pharmaeutical ingredients in the central nervous system space to some of the world's largest drug makers

PAG, a leading Asia-focused private equity firm, along with consortium partners CX Partners and Samara Capital, has reached an agreement to acquire a controlling stake in Anjan Drug Pvt Ltd, a Chennai-based manufacturer of active pharmaceutical ingredients (API). Terms of the deal were not disclosed.

The company founded by C Kalaichelvan in 1990 is a leading supplier of active drug ingredients in the central nervous system therapy segment to some of the world’s largest pharmaceutical companies in the US, Canada, Brazil and Europe, among other markets.

The acquisition is part of the PAG-led consortium’s strategy to create a best-in-class platform for the development and production of bulk drug ingredients, said the PE firm.

Said Nikhil Srivastava, Managing Director and head of India private equity at PAG: “Partnering with Kalaichelvan and Anjan is a key first step in our plan to create a pre-eminent platform for Indian APIs. The company has a strong customer base in some of the world’s largest and best-regulated pharmaceuticals markets and maintains the highest quality manufacturing standards. On behalf of the consortium, we look forward to working with Kalaichelvan and the company’s management to help them continue on their path to growth.”

With the Anjan deal, the PAG-led consortium is moving towards the creation of a platform to tap into the consolidation opportunities in India’s high-growth API manufacturing industry.

Srivastava further said, “We see the Indian API market as a very attractive opportunity and well positioned for the future. Globally, this sector is currently growing at an estimated eight per cent a year, with India, one of the three largest API producers in the world, growing even faster than that. By building a platform incorporating exceptional API producers like Anjan, we plan to develop a high quality, diversified portfolio of products with a solid client base and a broad range of technical expertise.”

PAG is currently investing out of its $6 billion PAG Asia-III buyout fund and has declared plans to invest up to $1 billion in India over the next few years.