Flex to acquire Electrical Power Products in USD 1.1 billion deal
Electronics manufacturing services provider Flex has entered into a definitive agreement to acquire US-based Electrical Power Products (EP2), a supplier of engineered-to-order electrical power control and protection systems. The transaction is valued at approximately USD 1.1 billion, including anticipated tax benefits of around USD 0.1 billion.
Closing is anticipated in the first quarter of Flex’s fiscal year 2027, subject to customary regulatory approvals, including clearance under the Hart-Scott-Rodino Act.
EP2, headquartered in Des Moines, Iowa, brings more than 35 years of experience in the design, integration, and manufacturing of control and relay panels, as well as modular control buildings. The company primarily serves utility, power generation, and industrial customers and is projected to generate approximately USD 323 million in revenue for the fiscal year ending March 31, 2026. It also expects double-digit organic growth and an adjusted EBITDA margin in the mid- to high-teens range.
Flex states that the acquisition will strengthen its position in the critical power segment and expand its exposure to long-term growth trends, including grid modernisation, electrification, data centre expansion, and US reshoring. The addition of EP2 is also intended to enhance Flex’s engineered-to-order capabilities and deepen its presence in the utility sector.
According to Flex CEO Revathi Advaithi, the acquisition supports the company’s ambition to play a larger role in modernising electrical infrastructure, particularly in the US market.
.png)