PAG, an alternative investment firm focused on Asia-Pacific, Wednesday announced that it has reached an agreement, along with consortium partners CX Partners and Samara Capital, to acquire a controlling stake in Hyderabad-based pharmaceutical firm Optimus Drugs Pvt. Ltd..
While PAG did not reveal the size of the deal, Unichem Laboratories in a regulatory filing on Tuesday disclosed that its board has approved entering into a share purchase agreement with Optimus and Sekhmet Pharmaventures Pvt Ltd (purchaser) to sell its entire shareholding in Optimus to the purchaser by secondary transfer of its 19.97% equity shares on a fully diluted basis for an aggregate consideration of Rs270.99 crore.
Established in 2004 by a team of scientists, Optimus is one of the fastest-growing manufacturers of active pharmaceutical ingredients (APIs) and finished dosages. The company exports its catalog of more than 100 drug products to 40 countries.
“The combined experience of PAG, CX Partners and Samara will help Optimus become a leading player in the global API industry, and further our mission of ensuring better health outcomes for all,” said Dr. D. Srinivas Reddy, founder and managing director, Optimus.
The deal marks the second acquisition by the consortium’s API platform, Sekhmet Pharmaventures, which aims to develop a hub for the development and production of bulk drug ingredients. In 2020, the consortium had acquired control of Chennai-based API manufacturer Anjan Drugs Pvt. Ltd.
The businesses of the two companies are highly complementary and will provide a solid foundation for the platform to make further acquisitions, PAG said in a statement.
“Optimus is a clear leader in R&D, manufacturing, and intellectual property management. We’re looking forward to continuing their mission to deliver high quality, affordable health products across the globe,” said Nikhil Srivastava, Partner and Managing Director, Head of India Private Equity for PAG.
As of December 31, 2021, PAG has invested over $580 million in private equity deals in India, including the acquisition of Acme Formulation Pvt. Ltd, a contract development and manufacturing outsourcing (CDMO) company, in 2021. As of 15 March 2022, PAG had approximately $50 billion in assets under management globally.
Jayendra Shah acted as transaction advisor, N.A. Shah Advisory Services LLP acted as financial and tax advisors and Khaitan & Co. acted as legal advisors to the promoters in the transaction. For the PAG-led consortium, AZB acted as legal advisors and Citadel Management Consulting acted as financial advisor.