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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 3, 1998
JABIL CIRCUIT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 38-1886260
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10800 Roosevelt Blvd.
St. Petersburg, FL 33716
(Address of principal executive offices, including zip code)
Registrant's Telephone No., including area code: (727) 577-9749
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JABIL CIRCUIT, INC.
Item 2. Acquisition or Disposition of Assets
On August 3, 1998, the registrant consummated the acquisition of
certain manufacturing and related assets comprising the "Formatter
Manufacturing Organization" business unit of Hewlett Packard Company located in
Boise, Idaho and Bergamo, Italy. The acquisition was made pursuant to an
agreement dated as of August 3, 1998 between the registrant and Hewlett-Packard
Company and an agreement dated as of August 3, 1998 between Jabil Circuit
S.r.l. (a subsidiary of the registrant) and Hewlett-Packard Italiana S.p.A. The
registrant will lease from Hewlett-Packard the physical facilities that the
acquired assets are currently operating from pending the registrant's
construction of new facilities. Approximately $76 million of consideration was
given by the registrant for the acquired assets, consisting of approximately
$65 million of cash and the assumption of approximately $11 million of trade
payables and personnel related liabilities relating to the acquired assets. The
final purchase price is subject to a post-closing adjustment as provided for in
the acquisition agreements. The registrants funded the cash portion of the
purchase price through cash on hand combined with a draw upon the registrant's
revolving line of credit with a group of lenders led by First Chicago. The
acquired assets were used by the Seller to manufacture printed circuit-board
assemblies for the LaserJet printer divisions of Hewlett-Packard. The
registrant will use the acquired assets to continue to manufacture printed
circuit-board assemblies for the LaserJet printer division of Hewlett-Packard.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated August 4, 1998
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Jabil Circuit, Inc.
Registrant
Date: August 18, 1998 By: /s/ Chris A. Lewis
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Chris A. Lewis
Chief Financial Officer
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JABIL CIRCUIT COMPLETES ACQUISITION
OF HEWLETT-PACKARD LASERJET FORMATTER
MANUFACTURING OPERATIONS
This release contains certain forward-looking statements, which are subject to
a number of risks and uncertainties. Some factors that could cause actual
results to differ materially include: business conditions and growth in the
contract manufacturing industry and the general economy; variability of
operating results; dependence on a limited number of customers; limited
availability of components; dependence on certain industries; variability of
customer requirements; and other risk factors described in the company's most
recently filed SEC documents such as the Form 10-K, filed 12/1/97.
St. Petersburg, FL - August 4, 1998-- Jabil Circuit, Inc. (NYSE: JBL) has
completed the purchase of the manufacturing assets of the Hewlett-Packard
(NYSE: HWP) LaserJet Solutions Group Formatter Manufacturing Organization
(FMO). The acquisition of the FMO includes all of the printed circuit assembly
assets located in Boise, Idaho and Bergamo, Italy. Jabil originally announced
its intent to purchase the FMO assets on May 11, 1998. Financial terms of the
transaction were not disclosed.
The newly acquired Jabil facilities will produce the printed circuit board
assemblies for all laser printers sold by HP. Jabil will lease the HP
facilities where FMO operations were previously conducted until Jabil
constructs new facilities in both Boise and Bergamo.
The Boise operation consists of seven newly equipped surface mount technology
manufacturing lines supporting leading edge interconnect processes. In
addition, Jabil has hired 400 former HP manufacturing employees. The Jabil
operation will be managed by Randy Della, who previously served as production
manager at the HP operation in Boise.
In Bergamo, the new Jabil operation consists of four newly equipped surface
mount technology manufacturing lines and 200 former HP employees. The Jabil
operation will be managed by Carlo Scocco, formerly factory technical support
manager at the HP Bergamo operation.
"The acquisition of Hewlett-Packard's Formatter Manufacturing Organization is a
significant step forward for Jabil," commented Scott D. Brown, Jabil's vice
president, Corporate Development. "Through this acquisition, we add a group of
talented and experienced manufacturing employees to our existing resources, and
strengthen our association with Hewlett-Packard, the unquestioned leader in the
laser printer industry."
"As we have worked with Jabil on the acquisition of the Formatter Manufacturing
Organization, we have gained great confidence they are the right strategic
supplier for the LaserJet Solutions Group," said Hatem Mostafa, HP's general
manager, Department Color LaserJet Operations. "We are also pleased with
Jabil's aggressive approach to closing this acquisition and are delighted to
close this transaction in just 10 weeks. Jabil's solid understanding of
manufacturing and the transition process will allow us uninterrupted product
flow. In addition, we were able to gain significant comfort by the enthusiasm
the current Formatter Manufacturing Organization management team exhibited in
assuming the key role in Jabil's transition plan."
Jabil Circuit, Inc. (http://www.jabil.com) is an electronic manufacturer of
circuit board assemblies and systems for products in the communication,
personal computer, peripheral, automotive and
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consumer industries. Jabil offers a range of manufacturing services, including
circuit design, board design from schematic, prototype assembly, volume board
assembly and system assembly services.
Jabil has approximately 5,000 employees in eight worldwide high-volume
manufacturing locations. Revenues for the fiscal year ended August 31, 1997
were $978 million.
CONTACT: Beth Walters, (813) 577-9749 or beth_walters @ jabil.com
