Pfizer Inc. (NYSE: PFE) said it agreed to sell its Capsugel business, a maker of hard capsules, to private equity firm Kohlberg Kravis Robert & Co. for $2.375 billion in cash.

To reflect the sale, Pfizer reduced its 2011 reported revenue forecast range to $65.2 - $67.2 billion from $66.0 - $68.0 billion, and 2012 reported revenue target range to $62.2 - $64.7 billion from $63.0 – $65.5 billion.

Pfizer had said last year that it would review strategic alternatives for Capsugel that may include a sale. Pfizer said it would use the proceeds of the sale to to make additional repurchases of its common stock.

Capsugel generated about $750 million in revenue and manufactured more than 180 billion hard capsules in 2010, the New York drugmaker said.

Henry Kravis and George Roberts, Co-Founders, Co-Chairmen and Co-CEOs of KKR, stated, Capsugel has an excellent portfolio and outstanding reputation for providing high-quality, innovative drug-delivery solutions.

The company said on Monday it expects the deal to close during the third quarter, assuming the receipt of the required regulatory clearances and satisfaction of other closing conditions.

Pfizer’s financial advisors for the transaction were Morgan Stanley & Co. Incorporated and Guggenheim Securities, LLC.

Shares of Pfizer ended Friday's regular trading at $20.38.