NYPRO Being Bought By Large CorporationMarty Bowden
Posted by: Marty Bowden
Date: Feb 04 2013 11:05 PM
Release from Jabil's website:
St. Petersburg, FL - February 4, 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.