Jabil, the contract electronics manufacturer, has announced an agreement to sell its manufacturing business in China to BYD Electronic, a subsidiary of Chinese electric-vehicle maker BYD. The deal, valued at approximately $2.2 billion, marks the largest sale in Jabil's history.
The CEO of Jabil, Kenny Wilson, stated that the proceeds from this transaction will strengthen the company's capital framework, allowing for additional share buybacks. Wilson also highlighted that the sale opens new opportunities for investment in sectors such as electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets.
Following the announcement, Jabil's shares experienced a 2.4% increase in premarket trading.
In a separate statement, BYD expressed that this acquisition will expand BYD Electronic's core supply chain for consumer electronics, further solidifying its market share and dominant position in the industry. As part of the deal, BYD will assume control of Jabil's product manufacturing business in Chengdu and Wuxi, China.
BYD Electronic is involved in a wide range of businesses including smartphones, tablet PCs, new-energy vehicles, robots, and communications equipment.
