Electronic product solutions provider Jabil Circuit will acquire manufactured precision plastic products provider Nypro for $665m, to expand its presence in the healthcare and consumer packaging markets.
Nypro provides plastic products for customers in the healthcare, packaging and consumer electronics industries and has total annual revenues of over $1bn.
The combination of Jabil and Nypro is expected to extend the company's materials manufacturing capabilities into the healthcare and consumer packaging markets as well as add depth to its consumer electronics business.
Jabil president (effective 1 March 2013) Bill Peters said the acquisition of Nypro would open a new market in packaging for customers in the food and beverage, household and personal care industries.
"The rigid plastic packaging market is a $140 billion addressable market globally. We are excited about aggressively pursuing this market on a global basis and look forward to working with the talented people within Nypro," Peters said.
Nypro president and CEO Ted Lapres said, "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."
The transaction, which is expected to complete during Jabil's fiscal third quarter, will be neutral to slightly accretive to the company's core earnings per share for the balance of fiscal 2013 and accretive to earnings per share on both a core and GAAP basis in fiscal 2014.
The total purchase price, which is subject to certain adjustments, is expected to be funded from Jabil's existing cash and credit facilities.