Jabil faces delay in Nypro closing

By Bill Bregar
Senior Staff Reporter

Published: March 22, 2013 2:31 pm ET
Updated: March 22, 2013 2:33 pm ET

Related to this story

Topics Mergers & Acquisitions, Medical, Packaging, Injection Molding
Companies & Associations Nypro Inc.

ST. PETERSBURG, FLA. -- While Nypro Inc.'s employee owners are voting on whether to sell their shares to big contract manufacturer Jabil Circuit Inc., the anticipated closing of the deal is getting pushed back a bit, to Jabil's fourth quarter, which ends Aug. 31.

"We feel like we're going to close the Nypro deal, if everything goes as planned, in the very early part of Q4," said Jabil CEO Mark Mondello in a second-quarter con­ference call with financial analysts.

Beth Walters, senior vice president of investor relations and communications, said the delay is expected because regulatory approval is still needed from several countries, including China, Russia and Hungary.

Competition authorities in the U.S. and Germany have already approved the deal, Walters said. The company had previously said it expected to close the deal in its third quarter, which ends in May.

Walters also said the vote by members of Nypro's Employee Stock Ownership Plan is going on now, and will be completed March 28. A shareholders' meeting follows April 2.

An 85 percent vote is required to approve the sale, Walters said.

Jabil, a $17 billion contract manufacturer of medical, consumer electronics and packaging that is traded on the New York Stock Exchange, is buying Nypro for $665 million. Jabil is based in St. Petersburg, Fla.

Meanwhile, Mondello said he and other Jabil officials have already been meeting with Nypro customers

Nypro is based in Clinton, Mass.; Mondello said that town will continue to play a key role.

"We intend to run the health-care business and the packaging business out of Clinton, Mass. ... We'll continue to fly those businesses strongly under the Nypro flag and the Nypro brand," he told analysts in the March 20 call. "And on the consumer side, we'll have their consumer business consolidated with Jabil's consumer business, and that's an area we've competed with them directly. We've got a lot of respect for them in that area."


Comments

Jabil faces delay in Nypro closing

By Bill Bregar
Senior Staff Reporter

Published: March 22, 2013 2:31 pm ET
Updated: March 22, 2013 2:33 pm ET

Post Your Comments


Back to story


More stories

Image

Lund adds to aftermarket auto products portfolio with buy of Bushwacker

January 29, 2015 2:49 pm ET

Lund International Inc. has expanded its portfolio of plastic aftermarket vehicle accessories by acquiring Bushwacker Inc.    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Chemtrusion, Mytex Indiana compounding plant set for expansion

January 29, 2015 1:35 pm ET

Japanese and American partners in a compounding plant in Indiana plan to expand the facility.    More

Image

Falcon Plastics expands in South Dakota

January 29, 2015 11:45 am ET

Falcon Plastics Inc. is putting the final touches on a 60,000 square foot addition that will nearly double the size of its Brookings, S.D.,...    More

Image

Plastics News Now: Losing weight with style, plastics in the Dragons' Den

January 29, 2015 6:00 am ET

A 19-year-old entrepreneur brings business to a U.K. injection molder after winning support on TV's Dragons' Den, auto suppliers combine h...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events