Flex to acquire power distribution firm Crown for $325 million
Crown Technical Systems has nearly 3 decades of experience in power distribution and control, with capabilities extending to modular solutions, medium voltage switchgear, control and relay products.
Flex is acquiring power distribution and protection systems firm Crown Technical Systems for USD 325 million in an all-cash transaction.
California-based Crown Technical Systems brings nearly three decades of solving power distribution and control challenges, with capabilities extending to modular solutions, medium voltage switchgear, control and relay products.
Crown has a diverse set of customers spanning utilities, data centers and power generation, with facilities in California, Texas and Canada, according to a media release.
Flex, an American multinational company, delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets. It has around 172,000 employees and generates approximately USD 26 billion in revenue.
“The addition of Crown Technical Systems strengthens our position to help customers solve power, heat, and scale challenges in the data center space aligned with our long-term growth strategy,” said Revathi Advaithi, Chief Executive Officer of Flex. “This acquisition reaffirms our commitment to differentiate our value through our EMS + Products + Services strategy that will deliver longer-term shareholder value.”
“This deal brings together complementary products and teams, marking a superb outcome for Crown’s employees and customers,” said Norm Siddiqui, President, Crown Technical Systems. “We are excited to join the Flex team and accelerate growth through Flex’s global reach and strong presence in markets such as data centers.”
This acquisition further increases Flex’s exposure to fast-growing, margin accretive end-markets including modular data center adoption and medium voltage power distribution. It also extends Flex’s power portfolio into the utility power market, supported by long-term trends in grid modernization and energy generation growth. At the same time, the acquisition strengthens Flex’s critical power portfolio and accelerates our growth in the US data center market, the media release said.
Crown is expected to generate revenue of approximately USD 120 million and high-teens EBITDA margin in fiscal 2025, which ends on March 31, 2025. The transaction is expected to close no later than December 2024, subject to customary closing conditions, including regulatory approval.
