Flex said it has agreed to buy Electrical Power Products, Inc. in an all-cash deal valued at about $1.1 billion, or roughly $1.0 billion after about $0.1 billion of anticipated tax benefits.
EP2 is expected to generate about $323 million in revenue in fiscal 2026 and is described as having a mid* to high-teens adjusted EBITDA margin profile. Flex said the transaction should be accretive to adjusted EPS in the first full fiscal year after closing.
The acquisition gives Flex a larger position in engineered-to-order electrical power control and protection systems, adding more than 35 years of EP2 experience in control and relay panels and modular integrated control buildings for utility, power generation and industrial customers.
EP2 operates a manufacturing campus in Des Moines, Iowa. Flex said the deal expands its critical power portfolio and deepens its utility exposure as demand rises from grid modernization, electrification, data center buildout and reshoring.
Flex expects the deal to close in the first quarter of fiscal 2027, subject to customary closing conditions. Following these announcements, the company's shares moved -7.51%, and are now trading at a price of $64.76. If you want to know more, read the company's complete 8-K report here.
