Flex Ltd. (NASDAQ: FLEX) completed its acquisition of Electrical Power Products, Inc. (EP²) on May 4 2026. The all‑cash transaction was valued at approximately $1.1 billion, including anticipated tax benefits of about $0.1 billion that bring the net cost to roughly $1.0 billion. The deal was originally expected to close in the first quarter of Flex’s fiscal year 2027, and the completion today marks the final step in that timeline.
EP² brings more than 35 years of experience designing, integrating, and manufacturing engineered‑to‑order electrical power control and protection systems, including control and relay panels and modular integrated control buildings. By adding EP²’s capabilities to its Critical Power platform, Flex expands its ability to serve utility, power‑generation, and data‑center customers, positioning the company to capture growth in grid modernization, electrification, and AI‑driven data‑center infrastructure. The acquisition also delivers a scaled Midwest manufacturing presence that supports U.S. reshoring initiatives and enhances Flex’s capacity to deliver customized power solutions.
CEO Revathi Advaithi said, “This acquisition strengthens our Critical Power platform and supports our strategy to meet growing demand for resilient electrical infrastructure. EP²’s engineering expertise, customer‑focused culture, and utility‑grade solutions further enhance our power portfolio.” The quote underscores the strategic intent to shift from commoditized EMS to high‑margin, IP‑rich infrastructure services and to deepen Flex’s footprint in critical power markets.
The deal aligns with broader industry trends toward grid modernization and electrification, and it strengthens Flex’s competitive position by adding EP²’s deep technical expertise and a robust U.S. manufacturing footprint. The acquisition also supports Flex’s long‑term strategy to move away from low‑margin EMS work and toward higher‑margin, service‑centric solutions that can command premium pricing and generate recurring revenue streams.
Financially, EP² is projected to generate about $323 million in revenue for the fiscal year ending March 31 2026, with double‑digit organic growth and a mid‑to‑high‑teens adjusted EBITDA margin. Flex expects the acquisition to be accretive to adjusted EPS in the first full fiscal year after closing, reinforcing the company’s margin expansion strategy and providing a solid foundation for future growth in the critical power segment.
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