Jabil Circuit Inc. said Monday that it has agreed to pay about $665 million to buy Nypro Inc., a Clinton-based company that provides precision plastic products for the health care packaging and consumer electronics industries.
Headquartered in Florida, Jabil is a global company that helps customers to design efficient supply chains.
“The combination with Nypro will extend Jabil’s materials manufacturing capabilities into the health care and consumer packaging markets as well as add depth to our consumer electronics business,’’ Timothy L. Main, chairman and chief executive of Jabil, said in a statement. “We think this is an important strategic step in Jabil’s development of engineering and capability intensive businesses. Combining Nypro’s capabilities and market presence with Jabil’s global scale and expertise should result in great things for customers, employees, and investors.’’
On its website, Nypro says it has more than 17,000 employees at 41 locations in 14 countries.
In 1998, Nypro chairman Gordon Lankton sold most of his stock to an Employee Stock Ownership Plan, ESOP, which now owns a substantial portion of Nypro’s stock along with employee-owners, according to Jabil’s press release.
In a statement, Lankton said: “I have always believed in growing our business in order to create meaningful opportunities for our employees. Our partnership with Jabil does just that, and I am confident they are an ideal partner for Nypro. The company has approximately 12,000 employees and manufacturing operations in 10 countries. The company has advanced capabilities in product design, tooling, injection molding, surface decoration, and complete product manufacturing.’’
The completion of the transaction is subject to a shareholder vote by participants in Nypro’s ESOP, as well as by Nypro’s shareholders, regulatory antitrust clearances in the US, China, and other jurisdictions and certain other customary closing conditions. The closing is expected to take place during Jabil’s fiscal third quarter, Jabil said. The total purchase price is expected to be $665 million, subject to certain adjustments.