Jabil says it signed an agreement sell its mobility business to BYD Electronic Ltd. Co. in a cash transaction for $2.2 billion.
Under the agreement, Jabil’s mobility business, which manufactures components for consumer electronics, will transfer to BYD Electronic. That business is mainly located in Chengdu and Wuxi, China, according to a statement.
St. Petersburg-based Jabil is a multinational manufacturing company that makes parts for major companies. Jabil employs 250,000 persons across 100 locations in 30 countries.
Jabil CEO Kenny Wilson says the sale is the right step forward for the company.
"Upon closing, Jabil will be well positioned to … provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets," says Wilson in the release.
Goldman Sachs and RBC Capital Markets served as the exclusive financial advisors to Jabil. Skadden, Arps, Slate, Meagher and Flom LLP were Jabil's legal counsel in this transaction.
The sale follows the ascension of Wilson as CEO. In May, Jabil chose Kenny Wilson to succeed Mark Mondello as CEO.
Jabil says it will have a conference call and webcast to review the fourth quarter and fiscal year 2023 results on Thursday. During the call, Wilson and members of the management team "will outline the strategic and financial priorities for the coming fiscal year, including additional information relating to the definitive agreement."
The call takes place at 8:30 a.m. Thursday.
For fiscal year 2022, Jabil grossed $33.48 billion in revenue, up from $29.29 billion in 2021 — an increase of 14.3%.