Pfizer, the world's biggest pharmaceuticals company, on Monday said it had agreed to sell capsule-maker unit Capsugel to private-equity firm KKR for about $2.4 billion in cash.
Pfizer said in a statement the proceeds from the sale would be used to buy back stock in addition to the previously announced repurchase programme of about $5 billion planned for 2011.
New Jersey-based Capsugel had about $750 million in revenue and manufactured more than 180 billion hard capsules in 2010.
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“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 Guido Driesen, president and general manager of Capsugel, in the statement.
Pfizer, based in New York, said the transaction was expected to close during the third quarter, subject to approval from the U.S., European Union and other regulators.
Assuming the sale is completed, Pfizer lowered its 2011 revenue forecast to a range of $65.2-67.2 billion from previous guidance of $66.0-68.0 billion.
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The revenue target range also was revised lower, to $62.2-64.7 billion frmo $63.0-65.5 billion.