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PAG acquires controlling stake in Acme Formulation for $145 million

Our Bureau Mumbai | Updated on July 22, 2021

Viral Shah will retain a significant minority stake in Acme and continue as its MD and CEO

PAG, an Asia-focused private equity firm, has acquired a controlling stake in Acme Formulation Private Limited, a contract development and manufacturing outsourcing (CDMO) company with a focus on complex pharmaceutical products.

PAG will invest $145 million (₹1,054 crore) to acquire a controlling stake in the company.

Founded in 2005 by Viral Shah, 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.

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

Nikhil Srivastava, Partner and Managing Director, Head of India private equity at PAG said: “Acme has a great reputation for high-quality manufacturing, as well as a leading presence in attractive markets including sterile injectables. We are excited to partner with Acme’s inspiring founder Viral to further accelerate the company’s growth.”

Viral Shah, founder, CEO and Managing Director of Acme, said: “Acme’s success so far has been built on three principles: our focus on innovation, our commitment to customer service, and our ability to meet the highest international standards for quality manufacturing. PAG, with its strong track record in pharmaceutical investments, is the ideal partner to help Acme grow even further in the years ahead.”

PAG is currently investing out of its $6 billion PAG Asia III buyout fund, with a strong commitment to invest in the Indian market since 2019. Following the Acme acquisition, PAG will have completed investments of more than half a billion dollars in India.

PAG’s latest deals include investments in Edelweiss Wealth Management, and Anjan Drug, a leading manufacturer of active pharmaceutical ingredients (APIs).

Published on July 22, 2021

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