Asia-focused private equity firm PAG, along with consortium partners CX Partners and Samara Capital, has reached an agreement to acquire a controlling stake in Chennai-based drug manufacturer Anjan Drug Pvt. Ltd, it announced on Monday.
Financial terms of the deal were not disclosed.
The acquisition is part of the PAG-led consortium’s strategy to create a platform for the development and production of bulk drug ingredients, as per the announcement.
Founded by C Kalaichelvan in 1990, Anjan is a supplier of active drug ingredients, used in central nervous system therapy, to some of the world’s largest pharmaceutical companies, in markets including the US, Canada, Brazil, and Europe.
“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,” said Nikhil Srivastava, managing director and head of India private equity at PAG.
“We see the Indian API market as a very attractive opportunity and well-positioned for the future. Globally, this sector is growing at an estimated 8 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,” Srivastava added.
With the Anjan deal, the PAG-led consortium is moving towards the creation of a platform to tap into consolidation opportunities in India’s high-growth API manufacturing industry, the statement added.
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. The firm currently manages $40 billion in capital on behalf of more than 150 leading institutional investors from Europe, North America, Asia, and the Middle East.