© Jabil - for illustrative purposes Electronics Production | September 26, 2018
Jabil to take over 14 sites from Johnson & Johnson
During the EMS providers conference call related to the its fiscal 2018 performance. CEO Mark Mondello disclosed some major developments for the company moving forward.
Jabil CEO, Mark Mondello, says that the company has entered into a deal with Johnson & Johnson – a deal which could provide annual revenues over more than USD 1 billion. “Jabil and Johnson & Johnson medical devices companies have entered into a long-term strategic collaboration. And this collaboration will significantly expand with currently our 12-year relationship and partnership with JJMD,” the CEO disclosed during the conference call. Integration cost and charges related with the deal are expected to be in the range of USD 80 million. “The real interesting part about this deal is that the cash outlay will largely be applied to working capital and inventory. We believe the annual revenue will grow to an excess of $1 billion annually,” Mr. Mondello continues. The CEO continues to say that this collaboration will expands Jabil’s healthcare portfolio significantly, and that it will elevate its technical capabilities. And here comes the really big news; as part of the deal, Jabil will acquire 14 sites from Johnson & Johnson, and will be supporting the J&J brands in areas of endo, surgical, spine, trauma and instrumentation. “I feel this collaboration has wonderful potential. We also think its going to be truly transformational. And I want to say thanks to all involved,” Mr. Mondello concludes.