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Electronics Production |

Jabil to acquire Nypro

Jabil Circuit is to acquire Nypro Inc., a provider of manufactured precision plastic products.

"The combination with Nypro will extend Jabil's materials manufacturing capabilities into the healthcare and consumer packaging markets as well as add depth to our consumer electronics business," said Timothy L. Main, Chairman and CEO of Jabil. "We think this is an important strategic step in Jabil's development of engineering and capability intensive businesses. Combining Nypro's capabilities and market presence with Jabil's global scale and expertise should result in great things for customers, employees and investors." "The combination with Nypro would also open an exciting new market in packaging for customers in the food and beverage, household and personal care industries," said Bill Peters, President of Jabil (effective March 1, 2013). "The rigid plastic packaging market is a $140 billion addressable market globally. We are excited about aggressively pursuing this market on a global basis and look forward to working with the talented people within Nypro." Completion of the transaction, which is subject to a shareholder vote by participants in Nypro's ESOP, as well as by Nypro's shareholders, regulatory antitrust clearances in the US, China and other jurisdictions and certain other customary closing conditions, is currently expected to take place during Jabil's fiscal third quarter. The total purchase price is expected to be $665 million, subject to certain adjustments, and is expected to be funded from Jabil's existing cash and credit facilities. The transaction is expected to be neutral to slightly accretive to Jabil's core earnings per share for the balance of fiscal 2013 and accretive to earnings per share on both a core and GAAP basis in fiscal 2014.

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March 28 2024 10:16 am V22.4.20-2
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