Jabil Circuit, Inc. JBL announced an agreement to acquire Nypro Inc.,
a provider of manufactured precision plastic products for customers in the
Healthcare, Packaging and Consumer Electronics industries, with over $1
billion in total annual revenues.
“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.”
“Nypro is a leader in precision plastic consumables and disposables for the
healthcare market. This will be a welcome complement to Jabil's engineering
and supply chain solutions for healthcare hardware and advances our ambition
to become a leading provider to the global healthcare marketplace,” said
Courtney Ryan, Senior Vice President, Global Business Units. “We believe this
significantly advances our healthcare strategy and broadens our value
proposition for customers,” he continued.
“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.”
“Jabil is an excellent strategic partner for Nypro," said Ted Lapres,
President and CEO of Nypro. "Our complementary capabilities will allow us to
offer our customers a more integrated manufacturing solution, while our
employees will appreciate Jabil's similar culture and commitment to ongoing
growth and innovation."
Nypro was founded in 1955 in Clinton, Massachusetts. Current chairman, Gordon
Lankton, a member of the Manufacturing Hall of Fame and the Plastics Hall of
Fame, took an ownership interest when joining the company in 1962. Mr. Lankton
acquired complete ownership in 1968 and led the company to success in new
markets and a global presence. In 1998, Mr. Lankton sold most of his stock to
an Employee Stock Ownership Plan (ESOP) which now owns a substantial portion
of Nypro's stock along with employee-owners. “I have always believed in
growing our business in order to create meaningful opportunities for our
employees. Our partnership with Jabil does just that, and I am confident they
are an ideal partner for Nypro,” said Lankton. The company has approximately
12,000 employees and manufacturing operations in 10 countries. The company has
advanced capabilities in product design, tooling, injection molding, surface
decoration and complete product manufacturing.
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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