Nypro, a healthcare product manufacturer based in Clinton, Massachusetts, announced that it has been purchased by Jabil Circuit for $665 million. The merger of these two companies represents a partnership between the two biggest contract manufacturers in the industry.
Nypro manufactures specialized plastic products and other components for medical devices. In addition, the company manufactures goods destined for retail store shelves. According to information from the company, Nypro currently has 12,000 employees around the globe. Every year, the company generates an estimated $1 billion in sales.
Jabil Circuit is a contract manufacturer based in St. Petersburg, Florida. In 2012, the company reported $17.1 billion in total sales. Out of these sales, an estimated eight percent were drummed up by its health products division.
Courtney Ryan is an SVP at Jabil Circuit. In prepared remarks, she said, "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.”
Nypro first entered the market in 1955. In 1962, Gordon Lankton took charge of the company. At that time, Nypro had less than $600,000 in sales every year.
In 1998, Lankton sold the majority of his company stock into an Employee Stock Ownership Plan. This transferred majority ownership of the company into the hands of its workers.