Please login to the form below

Not currently logged in
Email:
Password:

Pfizer sells Capsugel business for $2.4bn

Pfizer has entered into an agreement to sell its hard capsule business Capsugel to Kohlberg Kravis Roberts & Co (KKR) for a cash sum of $2.375bn

Pfizer has entered into an agreement to sell its hard capsule business Capsugel to Kohlberg Kravis Roberts & Co (KKR) for a cash sum of $2.375bn. In 2010, Capsugel generated around $750m in revenue and manufactured over 180bn hard capsules.

KKR, a leading global investment firm, manages assets through a variety of investment funds and accounts. As of December 31, 2010, KKR had $61bn in assets under its management. The firm has invested in more than 180 transactions, worth over $435bn, during the past 34 years.

"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.

As a result of this transaction, Pfizer expects to make additional repurchases of its common stock on the open market during 2011. Pfizer's repurchases of its common stock funded by Capsugel sale proceeds would be in addition to the previously announced anticipated repurchase of around $5bn of shares planned for 2011. 

"Capsugel has an excellent portfolio and outstanding reputation for providing high-quality, innovative drug-delivery solutions," said Henry R Kravis and George R Roberts, co-founders, co-chairmen and co-CEOs of KKR.

"We share Capsugel's enthusiasm for its future potential to grow, develop and continue to deliver an unmatched quality of products," they continued.

Due to the acquisition, Pfizer is updating its previous 2011 reported revenue guidance range from between $66.0bn and $68.0bn to between $65.2bn and $67.2bn. The company has also updated its previous 2012 reported revenue target range from between $63.0bn and $65.5bn to between $62.2bn and $64.7bn, while maintaining all other elements of its 2011 financial guidance and 2012 financial targets.

All Pfizer employees currently working on the Capsugel business will be transferred to Capsugel, which will maintain a corporate presence in the United States, with its global headquarters located in New Jersey. 

The transaction is expected to complete in Q3 2011, subject to customary closing conditions, including regulatory approval in certain jurisdictions, such as the US and the European Union, among others.

5th April 2011

Share

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
IGNIFI

We’re IGNIFI. An independent creative agency, we help spark and sustain successful brands for some of the biggest names in...

Latest intelligence

patients
Retaining reader value in plain language summaries of clinical studies
Balancing the risk of misinterpretation with the public’s ability to understand simplified plain-language summaries...
Can we talk about the ego-bias and chemicals influencing your target audience’s behaviour?
Over the Summer, the Page & Page team became fascinated by two books on this very subject. Two books from one author, Dean Burnett, an eminent neuroscientist, lecturing at Cardiff...
Paris
Making Europe a leader in bioscience: boosting trust and opening minds
A vision of Paris as Europe’s leading hub for life sciences innovation...

Infographics