February 4, 2013 / 3:51 PM / in 5 years

UPDATE 1-Jabil Circuit to buy plastic product maker Nypro for $665 mln

(Adds details)

Feb 4 (Reuters) - 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)

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