PAG, Acme Formulation $145 Million acquisition deal

Asia focused private equity company, PAG has announced that it has invested $145 Million (approx. Rs 1,054 crore) to acquire a controlling stake in Acme Formulation Pvt Ltd.

“As a part of the acquisition, Acme’s Founder, Viral Shah will retain a minority stake in the company and will continue as Managing Director & CEO,” PAG 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 and is a trusted partner for some of the world’s leading pharmaceutical companies.

With this acquisition, PAG completed its second transaction in the healthcare sector in the past 12 months.

Speaking on the acquisition, Nikhil Srivastava, Partner & Managing Director, Head of India private equity at PAG, said, “We are extremely pleased with the rapid closing of this transaction and are eager to begin our partnership with Acme. The company has built a reputation for high-quality manufacturing, as well as a leading presence in several attractive market segments.” 

“Acme has a strong, execution-oriented leader in Viral Shah, and we are looking forward to working with him to help accelerate Acme’s already significant growth,” Nikhil added.

Commenting on the development, Viral Shah, CEO & Managing Director of Acme, said, “Acme has a great partner that shares our long-term focus and agile, solutions-oriented approach. With PAG’s support, we look forward to developing new partnerships, markets, and products that will drive our future growth.”

PAG is currently investing out of its US$6 billion PAG Asia III buyout fund, with a strong commitment to investing in the Indian market. 

In the last 12 months, PAG has invested more than $750 million in India across multiple strategies. Its latest deals include investments in Edelweiss Wealth Management, and Anjan Drug, a leading manufacturer of active pharmaceutical ingredients (APIs).