Jabil to keep Nypro name in medical market

By Jeremy Carroll
Assistant Managing Editor

Published: October 30, 2013 3:33 pm ET
Updated: October 30, 2013 3:44 pm ET

Related to this story

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

Jabil Circuit Inc. will keep the Nypro name in the health care space, citing the company’s experience and well-known brand.

In a deal that was announced in February and closed July 1, Jabil bought Clinton, Mass.-based Nypro Inc. for $665 million. Jabil, which is publicly traded, bought Nypro from about 2,000 employees who were members of the plastic processor’s Employee Stock Ownership Plan. In total, Nypro had approximately 10,000 employees around the world.

Jabil executives discussed the acquisition and how the companies are being integrated during an Oct. 30 investor conference in Boston, which also was broadcast online.

Jabil CEO Mark Mondello said his company, which has specialized in consumer electronics, is looking to diversify.

“We are out there looking at a lot of opportunities beyond electronics,” he said.

Historically, Jabil has not been very aggressive in the acquisition market, because company leaders want deals to make fiscal sense and cultural sense as well, the CEO told the audience. Nypro fit that criteria, he said.

Approximately 65-70 percent of Nypro’s revenue came from the health care and packaging markets, with the rest coming from its consumer electronics business. The latter business was integrated into Jabil’s current business, while the other two markets will continue to “fly under the Nypro flag,” Mondello said.

Jabil has been in the health care market for 10 years, while Nypro has more than four decades in the industry.

“We have a company that has a rich, rich company history,” said Courtney Ryan, who has been tapped to lead Nypro, which will continued to be managed out of Clinton, Mass. “There was a high risk of eroding value if we extinguished the brand.”

Officially the division will be branded as Nypro, a Jabil Co.

Among unit’s offerings are drug delivery devices for insulin and inhalers for asthma patients.

Ryan said Nypro has some really great systems, which now have been adopted at Jabil.

“Sometimes the acquiring company is guilty of drinking their own Kool-Aid, and that’s not always a good thing,” he said.

While growth has been slow for Jabil in the health care market, Ryan said he expects the annual growth rate to be high single digits to 10 percent.


Comments

Jabil to keep Nypro name in medical market

By Jeremy Carroll
Assistant Managing Editor

Published: October 30, 2013 3:33 pm ET
Updated: October 30, 2013 3:44 pm ET

Post Your Comments


Back to story


More stories

Image

PrimaPak targets younger consumers

December 24, 2014 10:22 am ET

PrimaPak, which combines attributes of both rigid and flexible packaging, is being aimed squarely at younger folks — including millennials and...    More

Auto suppliers announce expansion plans in Slovakia

December 24, 2014 9:11 am ET

Three auto suppliers in Slovakia have announced plans to expand in the country.    More

Image

Blachford Acoustics Group enters European market with UK acquisition

December 23, 2014 3:22 pm ET

Heavy truck interior systems supplier Blachford Acoustics Group has purchased European supplier TMAT Acoustic Technologies Ltd.    More

Image

French investment firm buys Vienna-based Constantia Flexibles

December 23, 2014 3:03 pm ET

Constantia Flexibles GmbH, one of Europe's largest flexible packaging companies, has a new owner.    More

Image

Cretex buys California toolmaker

December 23, 2014 11:34 am ET

Medical device manufacturer JunoPacific Inc. has added tooling capabilities through the acquisition of Lawrence Tool and Engineering in California.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events