Flex Completes Electrical Power Products Acquisition, Secures $1.45 Billion Credit Facility

summarizeSummary

Flex Ltd. completed its acquisition of Electrical Power Products, Inc. and secured a new $1.45 billion senior delayed draw term loan credit facility to fund the strategic transaction and for general corporate purposes.

check_boxKey Events

• Acquisition Completed

  Flex Ltd. announced the completion of its acquisition of Electrical Power Products, Inc. (EP²), a provider of engineered-to-order electrical power control and protection systems. This acquisition expands Flex's Critical Power portfolio and strengthens its market presence, supporting long-term growth drivers like grid modernization and data center demand. The acquisition was previously disclosed as planned on March 30, 2026.

• Secured $1.45 Billion Credit Facility

  The company entered into a new Credit Agreement providing a senior delayed draw term loan credit facility in an aggregate commitment amount of $1.45 billion. The facility matures 364 days after the initial funding date and will be used for general corporate purposes, including financing the EP² acquisition.

• Financial Covenants Established

  The Credit Agreement includes covenants requiring the maintenance of a Debt/EBITDA Ratio not to exceed 4.00 to 1.00 (with a temporary increase to 4.50 to 1.00 for Qualified Acquisitions) and an Interest Coverage Ratio not less than 3.00 to 1.00.

auto_awesomeAnalysis

Flex Ltd. announced the completion of its acquisition of Electrical Power Products, Inc. (EP²), a strategic move that expands its Critical Power portfolio and strengthens its presence in the utility, power generation, and data center markets. This acquisition, previously disclosed as planned on March 30, 2026, was financed in part by a new $1.45 billion senior delayed draw term loan credit facility. The new debt, while substantial, is tied to a growth-oriented acquisition and includes customary financial covenants, such as a Debt/EBITDA Ratio not to exceed 4.00 to 1.00 (with a temporary increase to 4.50 to 1.00 for Qualified Acquisitions) and an Interest Coverage Ratio not less than 3.00 to 1.00. The successful closing of the acquisition and securing of financing are positive developments for the company's strategic growth initiatives.