Nypro Inc. of Clinton is being sold to a Florida-based provider of manufactured precision plastics products for an estimated $665 million, according to a statement from that company.
The buyer is Jabil Circuit Inc. of St. Petersburg, Fla., which has operations in 25 countries, and had a plant in Billerica that closed in 2009.
"The combination with Nypro will extend Jabil's materials manufacturing capabilities into the health care and consumer packaging markets as well as add depth to our consumer electronics business," said Timothy L. Main, Jabil's chairman and CEO. "We think this is an important strategic step in Jabil's development of engineering and capability intensive businesses.
Combining Nypro's capabilities and market presence with Jabil's global scale and expertise should result in great things for customers, employees and investors." More specifically, Jabil said the deal positions it as the top player in the health care market, which accounts for about 45 percent of Nypro's annual sales of $1.2 billion.
Jabil also cited Nypro's presence in the $140 billion plastic packaging market as a key in the deal. It said packaging is Nypro's fastest growing segment and accounts for 23 percent of sales.
Jabil also ranked seventh in last year Fortune list of the most admired companies.
"Jabil is an excellent strategic partner for Nypro," said Ted Lapres, Nypro's president and CEO. "Our complementary capabilities will allow us to offer our customers a more integrated manufacturing solution, while our employees will appreciate Jabil's similar culture and commitment to ongoing growth and innovation."
Nypro has manufacturing operations in 10 countries. It employs about 12,000 worldwide, 900 at its Clinton headquarters.
Nypro was founded in 1955 in Clinton. Its current chairman, Gordon Lankton, took an ownership interest when joining the company in 1962. Six years later, he acquired complete ownership and expanded the company's presence globally. In 1998, he sold most of his stock to an employee stock ownership plan (ESOP) that now owns a substantial portion of Nypro's stock along with employee-owners.
"I have always believed in growing our business in order to create meaningful opportunities for our employees. Our partnership with Jabil does just that, and I am confident they are an ideal partner for Nypro," Lankton said in a statement.
The company has advanced capabilities in product design, tooling, injection molding, surface decoration and complete product manufacturing.
Completion of the transaction, which is subject to a shareholder vote by participants in Nypro's ESOP, as well as by Nypro's shareholders, regulatory antitrust clearances in the U.S., China and other jurisdictions and certain other customary closing conditions, is expected to take place during Jabil's fiscal third quarter, which concludes in May, a Jabil statement said.
The transaction did not surprise Jack Healy, director of the Worcester-based Massachusetts Manufacturing Extension Partnership.
"They needed to have access to better cash flow" to help bring new products to market, he said of Nypro. "Its very hard to grow an international company by the bootstraps."
Healy said Jabil, historically a contract manufacturer, runs a "very, very good operation."
(Image credit: freedigitalphotos.net)
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