KKR Completes Sale of Capsugel to Lonza and Distributes Proceeds to All Employees

July 6, 2017

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced that the sale of Capsugel, a global leader in innovative dosage forms, to Lonza for USD $5.5 billion, has been completed following the receipt of regulatory approvals. As part of the sale, approximately $35 million of proceeds were distributed to non-management level employees of the company, including all colleagues from the company’s thirteen manufacturing facilities around the world. All Capsugel employees globally participated in the distribution of proceeds from the sale.

“Capsugel was a terrific outcome, not only in terms of the financial results for our fund investors, but also in the way we and the management team and all of the company’s employees partnered together to really drive a transformation of the company,” said Pete Stavros, Member of KKR and Head of KKR’s Industrial investment team. “In our industrial manufacturing companies, we have endeavored to give everyone an opportunity to participate in the benefits of ownership of their business as we believe it drives a higher level of engagement which can drive break out results. Capsugel is a great example of that.”

KKR has utilized this unique employee participation model at three other industrial companies: Capital Safety, Gardner Denver and C.H.I. Overhead Doors. Beyond extending this participation to all employees at these businesses, KKR also expanded employee engagement by having companies invest in the workforce in areas such as safety and health, and by partnering with the workforce to give back to their communities.

About KKR

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170706005185/en/

For KKR Media:
Kristi Huller or Cara Kleiman, 212.750.8300
media@kkr.com

Source: KKR & Co. L.P.

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This presentation contains certain forward-looking statements pertaining to KKR & Co. Inc. and its consolidated subsidiaries (collectively “KKR”), including certain investment funds, vehicles and accounts that are managed by KKR (each, a “fund”). Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on KKR’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to, assets under management, fee paying assets under management, after-tax distributable earnings, capital invested, syndicated capital, uncalled commitments, cash and short-term investments, fee related earnings, fee and yield segment EBITDA, core interest expense and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: whether KKR realizes all or any of the anticipated benefits from converting to a corporation and the timing of realizing such benefits; whether there are increased or unforeseen costs associated with the conversion, including any adverse change in tax law; the volatility of the capital markets; the general volatility of the capital markets; failure to realize the benefits of or changes in KKR’s business strategies including the ability to realize the anticipated synergies from acquisitions or strategic partnerships or other transactions; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR’s competition. All forward-looking statements speak only as of the date they are made. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long-term and financial results are subject to significant volatility.

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