Pfizer Inc (PFE) said Monday that it agreed to sell its Capsugel unit, which the firm described as an industry leader in hard capsules and an innovator in drug-delivery systems, to private equity group Kohlberg Kravis Robert & Co. [KKR] for $2.38 billion in cash.
Pfezier, the world’s biggest drugmaker, said it will use the proceeds of the sale to buy back additional stock and may use some of the funds to make other investments.
In 2010, Capsugel recorded $750 million in revenue and manufactured more than 180 billion hard capsules.
“The transaction is an endorsement of Capsugel’s consistent success to date and its potential for future growth with KKR, a firm with deep industry expertise and a long history of partnering with market-leading businesses to take them to the next level,” said in a statement Guido Driesen, President and General Manager of Capsugel.
Pfeizer said it expects the deal to close during the third quarter, assuming regulators in the U.S., EU, and other markets approve.
The New York-based company also updated its revenue forecasts.
As a result of this transaction, Pfizer said it lowered its revenue forecast for fiscal 2011 to $65.2B – $67.2B from $66B – $68B, and trimmed its fiscal 2012 revenue target range to $62.2B – $64.7B from $63B – $65.5B to account for the business’s sale.
Pfeizer said it is maintaining all other elements of its 2011 financial guidance and 2012 financial targets.
Pfizer shares rose 16 cents, or 0.83%, to $20.55 in late morning trading Monday on the NYSE.