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

RPC expansion provides the space needed for continued growth

September 22, 2014 11:46 am ET

MORGANTOWN, PA. — Success, over time, created a challenge for RPC Bramlage-Wiko USA Inc. in this rural Eastern Pennsylvania town....    More

Image

Delphi buying connector maker Antaya

September 22, 2014 2:25 pm ET

Delphi Automotive plc will buy Antaya Technologies Corp., a Rhode Island company that supplies wire harnesses and other technologies that connect...    More

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events