Jabil
reached an agreement to sell its manufacturing business in China to
BYD Electronic,
a subsidiary of Chinese electric-vehicle maker
BYD,
in a deal valued at about $2.2 billion.
In a statement,
Jabil
(ticker: JBL) said the sale of its mobility business would be the largest in the history of the contract electronics manufacturer.
“If completed, the proceeds from this transaction will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks,” said CEO Kenny Wilson. “Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets.”
Jabil shares were up 2.4% in premarket trading.
BYD said in a separate statement the acquisition would expand BYD Electronic’s “core supply chain for consumer electronics, and thus further increasing its market share and consolidating its leading position in the industry.” It will be taking over Jabil’s product manufacturing business in Chengdu and Wuxi, China.
BYD Electronic’s businesses range from smartphones, tablet PCs, new-energy vehicles, robots and communications equipment.
Write to Joe Woelfel at [email protected]
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