Contract electronics manufacturer Jabil Circuit Inc. said Monday that it will buy Nypro Inc., which provides manufactured precision plastic products for customers in the healthcare, packaging and consumer electronics industries, for about $665 million.
Jabil said the addition of Nypro will expand its materials manufacturing capabilities into the healthcare and consumer packaging markets, as well as add depth to its consumer electronics business.
Nypro was founded in 1955 in Clinton, Mass. Gordon Lankton, the company's current chairman and former owner, sold most of his stake in the company to an employee stock ownership plan in 1998. The plan now owns a substantial part of Nypro's stock along with employee-owners.
The company has about 12,000 employees and manufacturing operations in 10 countries.
The deal is subject to a vote by participants in the employee ownership plan, as well as approval by Nypro shareholders and regulators. It's expected to close during Jabil's fiscal third quarter.
The acquisition will be funded with Jabil's existing cash and credit facilities and will either be neutral for, or slightly boost, Jabil's core earnings per share for the rest of fiscal 2013. It's expected to increase the company's fiscal 2014 earnings per share.
Shares of St. Petersburg, Fla.-based Jabil rose 13 cents to $19.49 in morning trading.