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Jabil Stock Surges on Sale of Manufacturing Business in China to BYD Subsidiary

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The contract electronics manufacturer says the deal is the largest in its history.

Jabil reached an agreement to sell its manufacturing business in China to BYD Electronic, a subsidiary of Chinese electric-vehicle maker BYD, in a deal valued at about $2.2 billion.

In a statement, Jabil said the sale of its mobility business would be the largest in the history of the contract electronics manufacturer. “If completed, the proceeds from this transaction will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks,” said CEO Kenny Wilson. “Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets.

BYD Electronic’s businesses range from smartphones, tablet PCs, new-energy vehicles, robots and communications equipment.

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EV maker BYD buys US firm Jabil's China manufacturing business for $2.2 billion By ReutersEV maker BYD buys US firm Jabil's China manufacturing business for $2.2 billion
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