Flex Ltd. (NASDAQ: FLEX) has entered into a definitive agreement to acquire Electrical Power Products Inc. (EP2) in an all‑cash transaction valued at approximately $1.1 billion, including an anticipated $0.1 billion tax benefit that brings the after‑tax value to about $1.0 billion. The deal is expected to close in the first quarter of Flex’s fiscal year 2027, subject to customary closing conditions such as Hart‑Scott‑Rodino clearance.
EP2 is a seasoned provider of engineered‑to‑order electrical power control and protection systems, boasting more than 35 years of experience. The company generated roughly $323 million in revenue for the fiscal year ending March 31, 2026, and is projected to deliver double‑digit organic growth with a mid‑to‑high‑teens adjusted EBITDA margin. EP2 operates a manufacturing campus in Des Moines, Iowa, and serves utilities, power‑generation, and industrial customers with modular power buildings and control panels.
The acquisition aligns with Flex’s “EMS + Products + Services” strategy, expanding its critical‑power portfolio and deepening its presence in grid modernization, electrification, and data‑center buildout—high‑growth, margin‑accretive markets. EP2’s expertise complements prior Flex acquisitions such as Anord Mardix, Crown Technical Systems, and JetCool Technologies, reinforcing the company’s shift from a pure electronic‑manufacturing services model to an integrated solutions provider.
Revathi Advaithi, Flex’s CEO, said, “The addition of EP2 expands our capabilities to play a larger role in modernizing the electrical backbone of the U.S., while broadening the portfolio of critical power technologies we can offer our customers.” Tim O’Donnell, EP2’s President, added, “This agreement positions EP2 to accelerate growth while continuing our customer‑focused, engineering‑driven culture. Flex’s scale, global capabilities, and commitment to investment support long‑term opportunity for our employees and customers.”
Financially, the transaction is expected to be accretive to Flex’s adjusted earnings per share in the first full fiscal year after closing. The deal represents roughly 4.6 % of Flex’s market capitalization of $23.83 billion as of the announcement date, underscoring the strategic significance of the acquisition for the company’s growth trajectory.
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