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 Packaging, Medical, Mergers & Acquisitions, 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

Blow molding machinery maker opens first plant in Taiwan

October 1, 2014 1:27 pm ET

Taiwanese equipment maker Kin Precision Industry Co. Ltd. has opened a 2,000-square-meter, 25-employee factory in Taichung, Taiwan, with an eye to...    More

Image

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

Speaker: Many issues can affect multi-cavity molds

October 1, 2014 2:02 pm ET

There are several conditions necessary across all cavities of a multi-cavity mold to ensure that all parts are produced the same. These include...    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

Brown signs California's plastic bag ban into law

September 30, 2014 1:38 pm ET

Gov. Jerry Brown (D) made it official today: plastic bags are banned across the entire state of California.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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