Flex to Acquire Electrical Power Products for $1.1 Billion, Expanding Critical Power Portfolio

summarizeSummary

Flex announced a definitive agreement to acquire Electrical Power Products, Inc. for $1.1 billion in an all-cash transaction, aiming to expand its critical power capabilities and address high-growth markets.

check_boxKey Events

• Major Acquisition Announced

  Flex has entered into a definitive agreement to acquire Electrical Power Products, Inc. (EP2), a provider of engineered-to-order electrical power control and protection systems.

• Transaction Details

  The acquisition is an all-cash transaction valued at approximately $1.1 billion, or $1.0 billion after anticipated tax benefits. EP2 is expected to generate $323 million in revenue for its fiscal year ending March 31, 2026, with a mid to high-teens adjusted EBITDA margin.

• Strategic Expansion

  The acquisition significantly expands Flex's Critical Power portfolio, adding deep utility, power generation, and industrial expertise. It also broadens exposure to high-growth markets like grid modernization, electrification, and data center buildout.

• Financial Impact

  The transaction is expected to be accretive to Flex's adjusted EPS in the first full fiscal year after closing.

auto_awesomeAnalysis

Flex's agreement to acquire Electrical Power Products, Inc. for $1.1 billion (approximately $1.0 billion after tax benefits) is a significant strategic move. This all-cash transaction, representing a notable portion of Flex's market capitalization, is expected to be accretive to adjusted EPS in the first full fiscal year post-close. The acquisition expands Flex's Critical Power portfolio, deepens its presence in the utility and power generation sectors, and enhances its engineered-to-order capabilities. This move aligns Flex with high-growth, margin-accretive end markets driven by long-term trends such as grid modernization, electrification, and data center buildout, positioning the company for future growth.