Pfizer to sell Capsugel to KKR


Agreement completes Pfizer’s previously announced review of strategic options for the business

Pfizer and Kohlberg Kravis Roberts & Co have entered into an agreement whereby an affiliate of KKR will acquire Pfizer’s Capsugel business for US$2.375bn (€1.669 bn) in cash. Capsugel, the world leader in hard capsules and an innovator in drug-delivery systems, generated approximately $750m (€527m) in revenue and manufactured more than 180 billion hard capsules in 2010.

KKR is a leading global investment firm with US$61.0bn (€42.9bn) in assets under management as of 31 December 2010. Over the past 34 years, KKR has invested in more than 185 transactions with a total value of more than $435bn (€306bn). Its current private equity portfolio includes more than 60 portfolio companies with annual revenues in excess of $210bn (€148bn) and more than 900,000 employees.

According to Henry R. Kravis and George R. Roberts, co-founders, co-chairmen and co-ceos of KKR, ‘Capsugel has an excellent portfolio and outstanding reputation for providing high-quality, innovative drug-delivery solutions. We share Capsugel’s enthusiasm for its future potential to grow, develop and continue to deliver an unmatched quality of products.’

Capsugel will maintain a corporate presence in the US, with its global headquarters located in New Jersey. All Pfizer colleagues currently dedicated to this business will be transferred to Capsugel, which will be under the leadership of Guido Driesen upon the completion of the transaction.

The transaction is subject to customary closing conditions, and is expect to complete in the third quarter of 2011, assuming the receipt of the required regulatory clearances.

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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 Driesen, president and gneral manager of Capsugel.