Jabil to Acquire Nypro
ST. PETERSBURG, Fla., Feb 04, 2013 (BUSINESS WIRE) --
Copyright Business Wire 2013
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.
"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.
Jabil will host a conference call on Monday, February 4, 2013, at 10:00
am ET live on the Internet at http://www.jabil.com.
To access the conference call by phone, call: (800) 837-7537 from within
the United States, or (706) 634-1268 outside the United States. The
passcode is: 96971712.
A taped replay of the conference call will also be available on February
4, 2013, at approximately 12:00 p.m. ET through midnight on February 11,
2013. To access the replay, call: (855) 859-2056 from within the United
States, or (404) 537-3406 outside the United States. The passcode is:
96971712. An archived webcast of the conference call will be available
at http://www.jabil.com/investors/.
FORWARD LOOKING STATEMENT: This news release contains
forward-looking statements, including those regarding the extension of
Jabil's materials manufacturing capabilities into the healthcare and
consumer packaging markets; this transaction being an important
strategic step in Jabil's development of engineering and capability
intensive businesses; the combination of Nypro's capabilities and market
presence with Jabil's global scale and expertise resulting in great
things for customers, employees and business; Nypro being a welcome
complement to Jabil's engineering and supply chain solutions for
healthcare hardware; this transaction advancing our ambition to become a
leading provider to the global healthcare marketplace; this transaction
significantly advancing our healthcare strategy and broadening our value
proposition for customers; the combination with Nypro opening an
exciting new market in packaging for customers in the food and beverage,
household and personal care industries; our aggressive development of
the rigid plastic packaging market on a global basis; the partnering of
Nypro with Jabil enabling continued growth and expansion opportunities
for Nypro's employees and customers; the completion of the transaction
during Jabil's fiscal third quarter; the expected purchase price; the
funding of the purchase price; and the expected impact on Jabil's
earnings per share. The statements in this news release 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: the transaction failing to close for any reason, including a failure
to obtain regulatory antitrust clearances, the necessary ESOP and Nypro
shareholder vote or satisfaction of any closing condition; a delay in
closing; financing for the transaction not occurring as anticipated; the
actual purchase price differing materially from the expected purchase
price; our ability to manage the integration of Nypro's business with
ours; changes in our strategy; our ability to successfully develop
engineering and capability intensive businesses; our ability to
effectively compete in the global healthcare provider, food and
beverage, household, personal care and rigid plastic packaging markets;
our ability to retain the desired customers and personnel of Nypro; the
post-acquisition performance of Nypro; Nypro having potential
unanticipated liabilities; fluctuations in our stock's market price;
fluctuations in operating results and cash flows; unexpected, adverse
seasonal impacts on demand; changes in macroeconomic 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 rapid declines in
customer demand and other related customer challenges 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 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.
About Jabil
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.
About Nypro
Nypro is a global leader in plastics contract manufacturing with $1.2
billion (US) annual revenues and 12,000 employees. A vertically
integrated, global solutions provider of manufactured precision plastic
products, tooling and automation, Nypro operates 20 manufacturing
locations in 10 countries. Their markets include healthcare, packaging
and consumer/electronics. Founded in 1955, Nypro is headquartered in
Clinton, Massachusetts.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130204005884r1&sid=cmtx4&distro=nx
SOURCE: Jabil Circuit, Inc.
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