Jabil to Acquire Nypro

  Jabil to Acquire Nypro

      Action Deepens Capabilities in Diversified Manufacturing Services

Business Wire

ST. PETERSBURG, Fla. -- February 4, 2013

Jabil Circuit, Inc. (NYSE: JBL) announced an agreement to acquire Nypro Inc.,
a provider of manufactured precision plastic products for customers in the
Healthcare, Packaging and Consumer Electronics industries, with over $1
billion in total annual revenues.

“The combination with Nypro will extend Jabil’s materials manufacturing
capabilities into the healthcare and consumer packaging markets as well as add
depth to our consumer electronics business," said Timothy L. Main, Chairman
and CEO of Jabil. “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.”

“Nypro is a leader in precision plastic consumables and disposables for the
healthcare market. This will be a welcome complement to Jabil’s engineering
and supply chain solutions for healthcare hardware and advances our ambition
to become a leading provider to the global healthcare marketplace,” said
Courtney Ryan, Senior Vice President, Global Business Units. “We believe this
significantly advances our healthcare strategy and broadens our value
proposition for customers,” he continued.

“The combination with Nypro would also open an exciting new market in
packaging for customers in the food and beverage, household and personal care
industries,” said Bill Peters, President of Jabil (effective March 1, 2013).
“The rigid plastic packaging market is a $140 billion addressable market
globally. We are excited about aggressively pursuing this market on a global
basis and look forward to working with the talented people within Nypro.”

“Jabil is an excellent strategic partner for Nypro," said Ted Lapres,
President and CEO of Nypro. "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 was founded in 1955 in Clinton, Massachusetts. Current chairman, Gordon
Lankton, a member of the Manufacturing Hall of Fame and the Plastics Hall of
Fame, took an ownership interest when joining the company in 1962. Mr. Lankton
acquired complete ownership in 1968 and led the company to success in new
markets and a global presence. In 1998, Mr. Lankton sold most of his stock to
an Employee Stock Ownership Plan (ESOP) which 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,” said Lankton. The company has approximately
12,000 employees and manufacturing operations in 10 countries. 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 US, China and other jurisdictions and certain
other customary closing conditions, is currently expected to take place during
Jabil’s fiscal third quarter. The total purchase price is expected to be $665
million, subject to certain adjustments, and is expected to be funded from
Jabil's existing cash and credit facilities. The transaction is expected to be
neutral to slightly accretive to Jabil's core earnings per share for the
balance of fiscal 2013 and accretive to earnings per share on both a core and
GAAP basis in fiscal 2014.

Jabil will host a conference call on Monday, February 4, 2013, at 10:00 am ET
live on the Internet at http://www.jabil.com. To access the conference call by
phone, call: (800) 837-7537 from within the United States, or (706) 634-1268
outside the United States. The passcode is: 96971712.

A taped replay of the conference call will also be available on February 4,
2013, at approximately 12:00 p.m. ET through midnight on February 11, 2013. To
access the replay, call: (855) 859-2056 from within the United States, or
(404) 537-3406 outside the United States. The passcode is: 96971712. An
archived webcast of the conference call will be available at
http://www.jabil.com/investors/.

FORWARD LOOKING STATEMENT:This news release contains forward-looking
statements, including those regarding the extension of Jabil’s materials
manufacturing capabilities into the healthcare and consumer packaging markets;
this transaction being an important strategic step in Jabil’s development of
engineering and capability intensive businesses; the combination of Nypro’s
capabilities and market presence with Jabil’s global scale and expertise
resulting in great things for customers, employees and business; Nypro being a
welcome complement to Jabil’s engineering and supply chain solutions for
healthcare hardware; this transaction advancing our ambition to become a
leading provider to the global healthcare marketplace; this transaction
significantly advancing our healthcare strategy and broadening our value
proposition for customers; the combination with Nypro opening an exciting new
market in packaging for customers in the food and beverage, household and
personal care industries; our aggressive development of the rigid plastic
packaging market on a global basis; the partnering of Nypro with Jabil
enabling continued growth and expansion opportunities for Nypro's employees
and customers; the completion of the transaction during Jabil's fiscal third
quarter; the expected purchase price; the funding of the purchase price; and
the expected impact on Jabil's earnings per share. The statements in this news
release are based on current expectations, forecasts and assumptions involving
risks and uncertainties that could cause actual outcomes and results to differ
materially. These risks and uncertainties include, but are not limited to: the
transaction failing to close for any reason, including a failure to obtain
regulatory antitrust clearances, the necessary ESOP and Nypro shareholder vote
or satisfaction of any closing condition; a delay in closing; financing for
the transaction not occurring as anticipated; the actual purchase price
differing materially from the expected purchase price; our ability to manage
the integration of Nypro's business with ours; changes in our strategy; our
ability to successfully develop engineering and capability intensive
businesses; our ability to effectively compete in the global healthcare
provider, food and beverage, household, personal care and rigid plastic
packaging markets; our ability to retain the desired customers and personnel
of Nypro; the post-acquisition performance of Nypro; Nypro having potential
unanticipated liabilities; fluctuations in our stock’s market price;
fluctuations in operating results and cash flows; unexpected, adverse seasonal
impacts on demand; changes in macroeconomic conditions, both in the U.S. and
internationally; our financial performance during and after the current
economic conditions; our ability to maintain and improve costs, quality and
delivery for our customers; risks and costs inherent in litigation; our
ability to take advantage of perceived benefits of offering customers
vertically integrated services; changes in technology; competition;
anticipated growth for us and our industry that may not occur; managing rapid
growth; managing rapid declines in customer demand and other related customer
challenges that may occur; our ability to successfully consummate other
acquisitions and divestitures; managing the integration of businesses we
acquire; risks associated with international sales and operations; retaining
key personnel; our dependence on a limited number of large customers; business
and competitive factors generally affecting the electronic manufacturing
services industry, our customers and our business; other factors that we may
not have currently identified or quantified; and other risks, relevant factors
and uncertainties identified in our Annual Report on Form 10-K for the fiscal
year ended August31, 2012, subsequent Reports on Form 8-K and our other
securities filings. Jabil disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

About Jabil

Jabil is an electronic product solutions company providing comprehensive
electronics design, manufacturing and aftermarket product management services
to global electronics and technology companies. Offering complete product
supply chain management from facilities in 29 countries, Jabil provides
comprehensive, individualized-focused solutions to customers in a broad range
of industries. Jabil common stock is traded on the New York Stock Exchange
under the symbol, “JBL”. Further information is available on Jabil’s  website:
jabil.com.

About Nypro

Nypro is a global leader in plastics contract manufacturing with $1.2 billion
(US) annual revenues and 12,000 employees. A vertically integrated, global
solutions provider of manufactured precision plastic products, tooling and
automation, Nypro operates 20 manufacturing locations in 10 countries. Their
markets include healthcare, packaging and consumer/electronics. Founded in
1955, Nypro is headquartered in Clinton, Massachusetts.

Contact:

Jabil Circuit, Inc.
Beth Walters, 727-803-3511
Senior Vice President, Investor Relations & Communications
beth_walters@jabil.com
 
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