Press release from Business Wire
Jabil Completes Nypro Transaction
<p class='bwalignc'> <i><b>Strategic Acquisition Expected to Enhance Position in Key Markets</b></i> </p>
Monday, July 01, 2013
Jabil Completes Nypro Transaction12:15 EDT Monday, July 01, 2013
ST. PETERSBURG, Fla. (Business Wire) -- Jabil Circuit, Inc. (NYSE: JBL) today affirmed it has completed its acquisition of Nypro, Inc., a provider of manufactured precision plastic products for customers in the Healthcare, Packaging and Consumer Electronics industries. The definitive agreement was announced on February 4, 2013.
“We are pleased to finalize this transaction and look forward to integrating the Nypro business and customers with Jabil's current Healthcare & Instrumentation business,” said Courtney Ryan, Jabil's Senior Vice President who will run the business from the current Nypro headquarters in Clinton, Massachusetts. “This is an exciting time for both companies and we look forward to collectively serving customers with a broad array of service offerings in the healthcare and plastic packaging marketplaces under the Nypro name,” he said.
The combined entity of Jabil and Nypro is expected to bolster their position in key markets, such as healthcare and expand the market in packaging for customers in the food and beverage, household and personal care industries. The Consumer Electronics portion of Nypro's business will be integrated into Jabil's Materials Technology Services.
Approximately 10,000 Nypro employees will become Jabil employees. The Nypro trade name will be retained and used to jointly market services to customers in the healthcare and packaging markets for Jabil. The united team will work together to jointly market their integrated services.
The acquisition purchase price was $665 million, funded from Jabil's existing cash and credit facilities. Jabil has indicated that the transaction is expected to be accretive to earnings per share in its fiscal 2014, which begins September 1, 2013.
J.P. Morgan acted as the exclusive financial advisor to Jabil in this transaction, and Holland & Knight LLP acted as Jabil's legal counsel in this transaction.
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and aftermarket product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 29 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, “JBL.” Further information is available on Jabil's website: jabil.com.
This news release contains forward-looking statements, including the integration of the Nypro business and customers with our current Healthcare & Instrumentation business, our service of customers with a broad array of service offerings in the healthcare and plastic packaging marketplaces under the Nypro name, the bolstering of the combined entity's position in key markets such as healthcare, the expansion of the market in packaging for customers in the food and beverage, household and personal care industries, the integration of the Consumer Electronics portion of Nypro's business into our Materials Technology Services, the use of the Nypro trade name to jointly market services to customers in the healthcare and packaging markets, the efforts of the united team to jointly market their integrated services and the expectation that this transaction will be accretive to Jabil's earnings per share in its fiscal 2014. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: our ability to successfully integrate the operations acquired from Nypro and to retain its customers; the post-acquisition performance of the operations acquired from Nypro combined with our operations; changes to our business strategy; fluctuations in operating results and cash flows; adverse changes in current or future macro-economic conditions, both in the U.S. and internationally; our financial performance during and after the current economic conditions; our ability to maintain and improve costs, quality and delivery for our customers; risks and costs inherent in litigation; our ability to take advantage of perceived benefits of offering customers vertically integrated services; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing any rapid declines in customer demand that may occur; our ability to successfully consummate other acquisitions and divestitures; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of large customers; business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business; other factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2012, subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Jabil Circuit, Inc.
Investor & Media Contact:
Beth Walters, 727-803-3511
Senior Vice President, Investor Relations & Communications