Flex Acquires Electrical Power Products for $1.1 Billion
Flex announced that it has entered into a definitive agreement to acquire Electrical Power Products, a provider of engineered-to-order electrical power control and protection systems. The all-cash transaction is valued at approximately $1.1B and also reflects anticipated tax benefits valued at approximately $0.1B. The transaction is expected to be accretive to adjusted EPS in the first full fiscal year after close. EPP has more than 35 years of experience designing, integrating, and manufacturing highly engineered control and relay panels and modular, integrated control buildings for utility, power generation, and industrial customers. EPP serves a diverse set of longstanding customers and operates a scaled manufacturing campus in Des Moines, Iowa. EPP is expected to generate revenue of approximately $323M in fiscal year ending March 31, 2026, with anticipated double digit organic growth and a mid to high-teens adjusted EBITDA margin profile. The transaction is expected to close in the first quarter of Flex's fiscal year 2027, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act.
