Jabil Enters Plastics Segment with Nypro Deal
Posted on February 6, 2013 @ 11:27 am
St. Petersburg, Fla.-based electronic manufacturing services company Jabil Circuit Inc. has inked a deal to acquire Clinton, Mass.-based contract plastics manufacturer Nypro Inc. The announcement comes less than a week after the Jabil made several key executive appointments.
The transaction is subject to shareholder vote and antitrust clearances in the United States, China, and other jurisdictions where Jabil has operations. The expected total purchase price is $665 million, and Jabil will fund the deal from its existing cash and credit facilities.
Main will be leaving the post of CEO on March 1, when current Chief Operating Officer Mark T. Mondello assumes the role. Mondello recently was elected to the board of directors at the company’s annual meeting of shareholders on Jan. 24.
On Jan. 24, Jabil’s board of directors named William E. Peters to the position of president and William D. Muir, Jr. to chief operating officer, effective March 1. Both are current officers of Jabil, and have been with the company for more than 20 years. Human resources veteran Scott D. Slipy joined Jabil as executive vice president of human resources and human development. He most recently was vice president of compensation, benefits and M&A with Cisco Systems.
Courtney Ryan, senior vice president of Jabil’s global business unit, called Nypro’s precision plastic consumables and disposables for the healthcare market “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.”
Jabil’s newly appointed president noted that the rigid plastic packaging market is potentially as big as $140 billion globally.
“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 has approximately 12,000 employees and manufacturing operations in 10 countries. The company provides product design, tooling, injection molding, surface decoration and complete product manufacturing. Jabil provides electronics design, manufacturing, and aftermarket product management services to global electronics and technology companies.
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