Nypro Inc. said it agreed to a $665 million buyout from Jabil Circuit (NYSE: JBL), 1 of the largest contract manufacturers in the world.

Clinton, Mass.-based Nypro manufactures plastic products and components for the healthcare, packaging and consumer goods markets. The privately-held company has about 12,000 employees worldwide and generates roughly $1 billion per year in sales.

Jabil, based in St. Petersburg, Fla., reported $17.1 billion in sales in 2012, with about 8% coming from its healthcare and instrumentation business, according to regulatory filings.

"This will be a welcome complement to Jabil’s engineering and supply chain solutions for health-care hardware and advances our ambition to become a leading provider to the global health- care marketplace," Courtney Ryan, senior vice president of global business units at Jabil, said in a prepared statement.

Nypro was founded in 1955. In 1962, current chairman Gordon Lankton took the reins when the company had less than $600,000 in annual sales, according to the company.

In 1998, Lankton sold most of his stock to an Employee Stock Ownership Plan, creating 1 of the largest employee-owned companies in the world.