Jabil Circuit acquiring Nypro for £422m
By William Bregar, Plastics News
Posted 5 February 2013
Jabil Circuit is purchasing Nypro for $665m (£422m). Nypro is a global injection moulder, tooling supplier, designer and contract manufacturer with annual sales of more than $1bn (£635m).
Jabil highlighted Nypro's position in healthcare and consumer packaging as well as its complementary work in consumer electronics as the rationale behind the deal, which is expected to complete by the end of May.
St. Petersburg, Florida-based Jabil is a publicly traded company that specialises in electronics manufacturing.
"We think this is an important strategic step in Jabil's development of engineering and capability intensive businesses," said Timothy Main, chairman and chief executive of Jabil, in a statement. "Combining Nypro's capabilities and market presence with Jabil's global scale and expertise should result in great things for customers, employees and investors."
"Jabil is an excellent strategic partner for Nypro," said Ted Lapres, president and chief executive 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 on-going growth and innovation."
Nypro was founded in 1955. 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. In 1998, 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," Lankton said in a statement.
This is not the first time that Nypro and Jabil have linked up on an acquisition. The last time, in 2001, the buyer was Nypro.
Nypro bought two injection moulding plants in China from Jabil, including a plant in Anhui and the moulding portion of an operation in Panyu. The deal included 80 injection presses with clamping forces up to 250 tons.
The operations boosted Nypro's already considerable stake in China. At the time it had moulding and assembly plants in Shenzhen and Tianjin and a mould-making plant in Hong Kong.
Jabil had owned the plants since September 1999 when it purchased them from GET Manufacturing of Mountain View, Calif.
Nypro continued to supply Jabil from the purchased plants.
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