The elephant in the room at last week's MD&M West in Anaheim, CA was the announcement Feb. 4 that EMS giant Jabil Circuit is paying $665 million to acquire Nypro, one of the—if not the—largest independent plastics molders in the world.
Jabil wants Nypro so that it can build scale and advance its strategic plan in plastics molding in the global healthcare market. Major medical device manufacturers want suppliers who can make (and even design) their products in a soup-to-nuts process anywhere in the world.
The combination of Nypro's advanced plastics manufacturing capabilities, particularly in the United States, with Jabil's electronic manufacturing services (EMS) capabilities creates a juggernaut. A nice additional plum in the planned takeover is Nypro's growing sales in rigid packaging-a capability that will be unique in the EMS industry, which was created to accommodate the personal computer outsourcing boom in the 1990s....