Jabil Circuit Inc. acquired Nypro, Inc. from Gordon Lankton and employees of Nypro.
July 01, 2013 at 12:00 am EDT
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Jabil Circuit Inc. (NYSE:JBL) entered into agreement to acquire Nypro, Inc. from Gordon Lankton and employees of Nypro for approximately $670 million on February 4, 2013. The consideration is subject to certain adjustments and is expected to be funded from Jabil's existing cash and credit facilities. Nypro, Inc. generated annual revenue of $1.2 billion in 2012. The transaction is subject to approval to a shareholder vote by participants in Nypro's employee stock ownership plan, as well as by Nypro's shareholders, regulatory antitrust clearances in the United States of America, China and other jurisdictions, regulatory approvals and certain other customary closing conditions. The transaction is expected to close in May 2013. The transaction is expected to be neutral to slightly accretive to Jabil's core earnings per share for the balance of fiscal year, 2013 and accretive to earnings per share on both a core and generally accepted accounting principles basis in fiscal year 2014.
As of April 2, 2013, the transaction was approved by shareholders of Nypro. The United States, Russia and Germany have already approved the deal.
JPMorgan Chase & Co. acted as financial advisors for Jabil Circuit and provided a fairness opinion to Jabil's Board of Directors. Jonathan Oestreich and Jonathan Molner of Brown Brothers Harriman & Co. acted as the financial advisors for Nypro. John A. Marzulli Jr. of Shearman & Sterling LLP acted as legal advisor to Brown Brothers Harriman. Holland & Knight LLP acted as legal advisor to Jabil Circuit Inc.
Approximately 10,000 Nypro employees will become Jabil employees. The Nypro trade name will be retained and used to jointly market services to customers in the healthcare and packaging markets for Jabil. The united team will work together to jointly market their integrated services. The transaction is expected to be accretive to Jabil's earnings per share in its fiscal 2014, which begins September 1, 2013. Courtney Ryan, Jabil's Senior Vice President will run the business from the current Nypro headquarters in Clinton, Massachusetts. Duff & Phelps Corporation provided fairness opinion to the employees of Nypro. Neill Jakobe, Loretta Richard, Harry Rubin, Bill Sussman, Eric Elfman, Bill Jewett, Marc Lazar, Peter Alpert, Deidre Johnson, Grant Riedesel, Mary Orosz, Chris Powell, Josephine Greaves, Max Klupchak, Jim Davis, Adam Greenwood, Jonathan Cheng, Jillian Dumas, and Suneal Bedi of Ropes & Gray LLP acted as legal advisor to Nypro. Squire Sanders & Dempsey LLP acted as the legal advisor to Jabil Circuit Inc.
Jabil Circuit Inc. (NYSE:JBL) completed the acquisition of Nypro, Inc. from Gordon Lankton and employees of Nypro on July 1, 2013
Jabil Inc. specializes in electronic outsourcing services. Net sales break down by activity as follows:
- development of engineering solutions and services in the field of materials technology (51.7%): engineering, machining and manufacturing solutions for products made of plastics, metals, fibers and glass, and composite materials, etc. for consumer electronics, wearable technology, aeronautics, defense, health, mobility and packaging industries;
- design, engineering, mass production and assembly of electronic systems and subsystems (48.3%): for the automotive, transportation, heavy equipment, computer, home automation, energy, telecommunications, networking, distribution and printing industries. The group also offers 3D printing, prototyping and testing services, as well as supply chain management solutions and services.
Net sales are distributed geographically as follows: the United States (14.2%), Singapore (21.3%), Mexico (17.5%), China (16.9%), Malaysia (8%), India (4.6%) and other (17.5%).
JABIL INC. 
