On February 4, 2013, Jabil announced the strategic acquisition of Clinton, Massachusetts-based Nypro, 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. As markets shift and technology accelerates, customers count on their global manufacturing partners to have integrated capabilities tailored for the future. That’s why Jabil’s acquisition of Nypro is important. The acquisition not only provides new long-term solutions for current Jabil customers but also immediately supports Nypro customers.
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Not only does Nypro provide complementary competencies to Jabil, it has a similar passionate, entrepreneurial culture and a superb reputation for quality. As Tim Main noted, “Nypro has a superb reputation in the marketplace with a very strong cultural affinity with Jabil. The acquisition produces a partnership unique in the industry.”
Jabil doesn’t acquire companies quickly or often, so its acquisition of Nypro is noteworthy. The acquisition accelerates Jabil’s aggressive plans for growing its diversified manufacturing business, especially in the healthcare sector, lending immediate credibility in key markets such as drug delivery & diagnostics. Jabil is now positioned as the only full-service healthcare manufacturer in consumer packaging and disposables providing simplified supply chain solutions and product innovations in converged products. Jabil’s experience in electronics and optics, combined with Nypro’s experience in healthcare and consumables, create big opportunities. Financially, the deal opens Jabil to the high-growth $140 billion plastic packaging market and adds $205 billion to Jabil’s addressable market.
According to Ted Lapres, President and CEO of Nypro, “The competitive landscape was changing, size matters and customers demanded more . . . Nypro customers are looking for global, turnkey and integrated solutions. The trend is toward consolidation and linking up with Jabil allows us to bring this to customers.” Both Jabil and Nypro customers will immediately benefit from complementary portfolios. Nypro’s impressive tooling capabilities and large packaging footprint deepens Jabil’s expertise and expands its capabilities in global markets. With 40 years of service history to its customers, the acquisition delivers immediate credibility that takes years and years to build – a trusted partner to healthcare companies. As Jabil continues to focus on long-term success and long-lasting products, it continues to differentiate itself from electronic manufacturing companies that have been traditional competitors. With more and more of its revenue generated from diversified services: “It’s time to update the perception of Jabil,” Tim Main said.