Pfizer (NYSE:PFE) announced it is selling its Capsugel unit to Kohlberg Kravis Roberts (NYSE:KKR) for $2.375 billion. Terms are an all cash deal.
The Capsugel division manufactures various types of capsules used by nutrition and pharmaceutical companies.
Pfizer cut its yearly revenue forecast after the Capsugel announcement.
Capsugel generated about $750 million in revenue in 2010. According to Pfizer, it will use the capital from the deal as part of its $5 billion share repurchase plan.
Pfizer has let it be known that they're going to divest of some businesses in order focus on higher-profit businesses, specifically those developing new medicines.
KKR was trading at $17.12, up $0.21, or 1.24 percent, as of 1:19 PM EDT. Pfizer was trading at $20.50, up $0.12, or 0.59 percent.
Monday, April 4, 2011
Pfizer (PFE) Selling Capsugel Unit to (KKR)
Labels:
Kohlberg Kravis Roberts,
Pfizer
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