Jabil to Divest Aftermarket Services for $725M

Jabil Circuit

today announced that it has entered into an agreement with iQor Holdings, Inc. for the sale of its aftermarket services business for $725 million. In 1999, Jabil entered the electronics warranty repair business through a $30 million acquisition (later named Jabil Aftermarket Services, or AMS). “Our AMS business has been a wonderful asset to Jabil over the past 14 years, as it grew through internal growth and acquisitions to represent $1.1 billion in revenue for Jabil in fiscal 2013. Today, Jabil's AMS business is concentrated in depot repair for consumer electronics, which is not aligned with our strategy to focus on diversified manufacturing solutions,” said Mark T. Mondello, Jabil's C.E.O.