Jabil Inc (NYSE:JBL) inked a deal to divest its Mobility business to Chinese EV maker BYD Co., Ltd. (OTC:BYDDY) (OTC:BYDDF) BYD Electronic (International) Company Limited (BYDE) for $2.2 billion.
As per the agreement, JBL’s Mobility business, which manufactures components for consumer electronics, will be transferred to BYDE. The business is mainly located in Chengdu and Wuxi, China.
The transaction is projected to close within the first two-quarters of JBL’s current FY24 (period from September 1, 2023, through February 29, 2024), subject to closing conditions.
The deal follows a preliminary agreement announced on August 27, 2023.
“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,” stated Jabil CEO Kenny Wilson.
Jabil held $1.48 billion in cash and cash equivalents as of Q3-end.
Also Read: Jabil Analysts Boost Their Forecasts After Strong Q3 Results
Price Action: JBL shares closed lower by 2.53% at $105.00 on Tuesday.
