Jabil Circuit (JBL) to Acquire Nypro in $665M Deal
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Price: $19.82 -0.5%
EPS Growth %: -12.5%
Financial Fact:
Cash dividends declared per common share: 0.08
Today's EPS Names:
CEDU, CHC, CIDM, More
EPS Growth %: -12.5%
Financial Fact:
Cash dividends declared per common share: 0.08
Today's EPS Names:
CEDU, CHC, CIDM, More
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Jabil Circuit, Inc. (NYSE: 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.
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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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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