After completing a strategic review of options for its Capsugel business, Pfizer announced on Apr. 04, 2011 that Kohlberg Kravis Roberts & Co L.P  (KKR )agreed to acquire the pharmaceutical and dietary capsule company.

Capsugel generated approximately $750 million in revenue and manufactured more than 180 billion capsules in 2010. According to Guido Driesen, president and general manager of Capsugel, the transaction is “an endorsement of Capsugel’s consistent success to date and its potential for future growth…”

But it also represents Pfizer’s previously announced objectives to streamline its business. Pfizer gained Capsugel in 2000, as part of its $90-billion acquisition of Warner-Lambert, which took over original owner, Parke-Davis, in the 1970s.

KKR co-founders and co-CEOs, Henry Kravis and George Roberts, stated in a Pfizer Apr. 4, 2011 press release that: “Capsugel has an excellent portfolio and outstanding reputation for providing high-quality, innovative drug-delivery solutions.” They also shared Capsugel’s enthusiasm for future potential. KKR has a current private equity portfolio that includes over 60 companies, over $210 billion in annual revenues and more than 900,000 employees.

Pfizer stated that Capsugel will maintain its global headquarters in New Jersey and that any Pfizer staff dedicated to the business would be transferred to Capsugel under the leadership of Guido Driesen.

The sale will enable Pfizer to increase the previously announced $5 billion it plans to spend on the repurchase of its common shares on the open market in 2011. The transaction is expected to close in the third quarter, subject to regulatory and closing requirements.