Pfizer Inc

has agreed to sell its Capsugel unit, the world's largest maker of hard capsules, to private equity firm KKR & Co for nearly $2.38 billion.

Pfizer, which said in October it was exploring a potential sale of Capsugel, said it expected to make additional share repurchases this year as a result of the deal. The share buybacks would be in addition to its previously anticipated repurchase of about $5 billion planned for 2011, the company said in making the announcement on Monday.

Pfizer slightly lowered its revenue targets for this year and next year as a result of the sale of Capsugel, which has about $750 million in revenue.

(Reporting by Lewis Krauskopf, editing by Maureen Bavdek)

Pfizer