Pfizer has plans to sell its Capsugel unit to an affiliate of investment firm Kohlberg Kravis Roberts (KKR) for nearly $2.4 billion in cash. Pfizer’s plans to divest the division to narrow its business focus have been known for a while, according to Pharma Times.
As a result of the Capsugel sale, Pfizer has lowered its sales expectations for the year, given that Capsugel," a world leader in hard capsules and an innovator in drug-delivery systems," pulled in revenues of around $750 million last year.
Henry Kravis and George Roberts, co-founders, chairmen and chief executive of KKR, explained the firm's interest in the deal and highlighted Capsugel's "excellent portfolio and outstanding reputation for providing high-quality, innovative drug-delivery solutions." They said shared the group's "enthusiasm for its future potential to grow, develop and continue to deliver an unmatched quality of products."
The transaction is expected to close sometime during the third quarter, assuming all customary closing conditions are satisfied.