Jabil completed the sale of its Mobility business to BYD Electronic (BYDE) for $2.2 billion in cash.
BYD Electronic is a subsidiary of Shenzhen-based BYD Group, which is one of the largest electric vehicle and battery manufacturers in China and the world.
The deal was initially announced on September 26, 2023.
“I am delighted to close the transaction and receive the net proceeds ahead of schedule,” said CFO Mike Dastoor. “The earlier close and receipt of funds will enable us to begin initiating plans to reduce stranded costs and executing a series of accelerated buybacks throughout FY24. As a result, we expect to fully utilize our current $2.5 billion dollar repurchase authorization this fiscal year. These actions give me confidence that we will be able to offset lower income in Q2 and deliver core earnings for FY24 in excess of $9 per diluted share.”
Jabil’s mobility business was primarily focused on:
- Electronic components: Manufacturing printed circuit boards (PCBs), sensors, and other electronic components for various automotive systems.
- Assembly and subassemblies: Assembling complex modules like dashboards, lighting systems, and infotainment units for car manufacturers.
- Logistics and supply chain management: Handling the intricate logistics of sourcing materials,production, and delivery of components to automakers.
