Asia-focused private equity firm PAG has mandated Avendus to explore the sale of its controlling stake in Indian pharmaceutical company Acme Formulation, three sources familiar with the situation said.

The sale process launched in November, and the deal size is expected to be between USD 200m and USD 250m, equivalent to 10x-15x EBITDA, the first source said.

The deal size can still change depending on buyer interest, the second source said.

The process is still in the first round, and first-round bids are scheduled to be collected next month, the second source also noted.

Global private equity firms Platinum Equity Partners and TA Associates are believed to be evaluating the target, one of the sources said. “It is still early days.”

Acme Formulation’s oral solid manufacturing facility is an attractive proposition for both private equity and strategic buyers, the source added.

In July 2021, PAG acquired an undisclosed controlling stake in Acme Formulation for USD 145m through PAG Asia III buyout fund, as per its official announcement. Acme’s founder Viral Shah retained a significant minority stake in the company, continuing as managing director and CEO post-deal.

Founded in 2004, the Himachal Pradesh-based Acme provides contract manufacturing and development services for oral solid and sterile dosage forms in the pharmaceutical industry, as per its website. The company is one of the leading producers of thyroid treatment product Levothyroxine and female reproductive healthcare products. It also owns a USFDA-approved sterile injectables facility through its subsidiary Immacule Lifesciences.

Acme has three manufacturing sites approved under the European Union’s Good Manufacturing Practices (EU GMP). The company generated revenue of INR 5.9bn (USD 65.4m) for the fiscal year ended March 2024, according to the Tracxn database.

Avendus declined to comment. PAG and Acme Formulation did not respond to request seeking comments.