Pfizer (PFE) Selling Capsugel Unit to (KKR)

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.

Del Monte (DLM) Taken Private, No Longer Trading

Shares of Del Monte (NYSE:DLM) are no longer listed on the New York Stock Exchange after being acquired by a group of Private equity firms led by Kohlberg Kravis Roberts & Co. on Tuesday.

The food company was acquired for $4 billion.

Investors, including Kohlberg Kravis Roberts, Vestar Capital Partners and Centerview Partners agreed to acquire the food maker in November for $19 a share and to assume $1.3 billion in debt the firm held.

Richard Wolford, 66, chairman, president and CEO of Del Monte, is leaving the company. Neil Harrison, 58, senior advisor at Vestar, will take over the reins until a successor is found.

Also leaving Del Monte will be CFO David Meyers, 65, who will be replaced by Larry Bodner, 48, who is now executive vice president of finance.

This is the second time Kohlberg Kravis Roberts have owned Del Monte.