Feb 4 Jabil Circuit Inc said it would
buy Nypro Inc, a maker of precision plastic products, for about
$665 million to add to its consumer electronics, healthcare and
consumer packaging businesses.
Jabil, which counts Apple Inc, Cisco Systems Inc
and BlackBerry among its largest
customers, said it expected the acquisition to be neutral or to
slightly add to its core earnings per share in fiscal 2013.
Clinton, Massachusetts-based Nypro had annual revenue of
about $1 billion, Jabil said. It has about 12,000 employees and
manufacturing operations in 10 countries.
"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," Jabil Chief Executive Timothy Main said
in a statement.
The transaction, subject to Nypro's shareholder vote, is
expected to be completed during Jabil's fiscal third quarter
ending May 31.
Jabil said last year it expected to make strategic
acquisitions in the diversified manufacturing business.
Jabil said it expected to fund the deal from its existing
cash and credit facilities.
Shares of the company were marginally high at $19.47 in
morning trade on the New York Stock Exchange on Monday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Supriya
Kurane and Don Sebastian)