Jabil Circuit to acquire Shemer Group
10 August, 2015
The deal will strengthen Jabil Circuit's position in the Israeli market and in the market for contract manufacturing in Europe
The deal will strengthen Jabil Circuit’s position in the Israeli market and in the market for contract manufacturing in Europe
Jabil Circuit, Inc. (NYSE:JBL) Announced an agreement to purchase Shemer Group from the north of Israel. The price was not disclosed. Shemer Group specializes in CM (contract manufacturing) for high tech capital equipment manufacturers with special focus on High Mix Low Volume complex tools. Among its customers: Applied Materials, KLA Tencor, Nova, Camtek, Orbotech, HP, GE and some defense industries.
Shemer Group operates 2 production plants in the north of Israel, with approximately 350 employees. The merger agreement will take effect after receiving the regulatory approvals. The company (Jabil Circuit) said this acquisition will strengthen its position in the Israeli market and in the market for contract manufacturing in Europe.
The latest movement came after an earlier and unsuccessful attempt to work in the Israeli EMS market. In May 2012 Jabil has signed a Strategic Alliance Agreement with RH Electronics, one of the biggest EMS providers in Israel. The idea was to gain a share in the local production market, by combining the advantages of local production site with Jabil’s global presence.
But the cooperation did not achieve the expected results. About 2 month ago RH Electronics sent a letter of abort to Jabil Circuits, and terminated the cooperation agreement.
Jabil Circuit, incorporated on February 21, 1992, is a provider of electronic manufacturing services and solutions. Jabil provides electronic design, production and product management services. Jabil headquartered in St. Petersburg, FL an operates in 24 countries with 180,000 employees. In June 2015, the company reported third quarter net revenue of $4.4 billion, a 15 percent increase from the third quarter of fiscal year 2014.