Industrial Electronics

Jabil, Nypro to Merge

05 April 2013

Employee shareholders of plastics manufacturer Nypro have approved a proposed merger with global EMS provider Jabil Circuit Inc. The vote was announced this week.

Courtney Ryan, Jabil's Senior Vice President, Global Business Units, will assume a leadership role in the combined Nypro-Jabil operations. Nypro has 12,000 employees in 10 countries and services the healthcare, packaging and consumer electronics markets. Jabil, which provides electronic design, manufacturing and aftermarket product management services to global electronics companies, has facilities in 30 countries.

For Jabil, the move could mean higher-margin business, according to Thomas J. Dinges, CFA and Senior Principal Analyst, Outsourced Manufacturing Intelligence Service, IHS. “It could open the door to more electronics-related business for Jabil, but in reality this is a lateral move into a business with higher margins and potentially a larger addressable market,” he said. “A number of major companies have shifted strategy towards less electronics manufacturing and more ‘other’ manufacturing that has higher margins.”

The transaction will be finalized once all remaining closing conditions, primarily the receipt of applicable anti-trust approvals, have been completed. Antitrust approvals have been received in the United States, Russia and Germany and are pending in China, Mexico and Hungary. Approvals are currently anticipated to be received during Jabil's fourth fiscal quarter.

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