Jabil Inc. announced the signing of a definitive agreement to divest its Mobility business to BYD Electronic (International) Company Limited in a cash transaction valued at $2.2 billion. The definitive agreement follows a preliminary agreement announced by the two companies on August 27, 2023.
Under the agreement, Jabil’s Mobility business, which manufactures components for consumer electronics, will transfer to BYDE. The business is mainly located in Chengdu and Wuxi, China.
“We are pleased to reach this definitive agreement with BYDE and are confident that this transaction is the right step forward for the company, our people, and customers,” said Jabil CEO Kenny Wilson.
“Upon closing, Jabil will be well positioned to enhance its shareholder-centric capital framework, including incremental share buybacks. Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets,” added Wilson.
The transaction is anticipated to close within the first two quarters of Jabil’s current fiscal year 2024 (which is the period from September 1, 2023 through February 29, 2024), and is subject to closing conditions, including required regulatory approvals.