Core Insights - Flex Ltd. has agreed to acquire Electrical Power Products, Inc. (EP2) for approximately $1.1 billion in cash, with net value estimated at $1.0 billion after tax benefits [1][2][9] - The acquisition is projected to be accretive to adjusted earnings per share in the first full fiscal year following the closing [1][9] - EP2 is expected to generate around $323 million in revenues for the fiscal year ending March 31, 2026, with anticipated double-digit organic growth and a mid- to high-teens adjusted EBITDA margin [2][9] Acquisition Details - The deal enhances Flex's presence in high-growth markets related to grid modernization, electrification, and engineered power solutions [3][9] - The transaction is expected to close in the first quarter of Flex's fiscal 2027, pending customary closing conditions [2] - Citi is serving as the exclusive financial advisor to Flex, while RA Capital Associates LLC is advising EP2 [4] Strategic Implications - The acquisition will expand Flex's capabilities in supporting the modernization of U.S. electrical infrastructure, addressing rising demand and system complexity [5] - Flex's acquisition strategy has been robust, with recent deals enhancing its capabilities in data center cooling and critical power solutions [6] - The company is scaling its global capacity, with new assets in Poland to boost compute and cooling capabilities across EMEA [6] Financial Outlook - For the fourth quarter of fiscal 2026, Flex expects revenues to be between $6.75 billion and $7.05 billion, with Reliability Solutions revenues projected to increase in the low double-digit to mid-teens range [7] - Flex's shares have surged 83.1% over the past year, outperforming the Zacks Electronics - Miscellaneous Products industry's growth of 52.3% [8]

Core Viewpoint - Flex has announced a definitive agreement to acquire Electrical Power Products, Inc. (EP2) for approximately $1.1 billion, which is expected to enhance its capabilities in the electrical power sector and contribute positively to adjusted EPS in the first full fiscal year post-acquisition [1][4]. Company Overview - EP2 has over 35 years of experience in designing and manufacturing engineered control and relay panels for utility, power generation, and industrial customers, operating a significant manufacturing campus in Des Moines, Iowa [2]. - The acquisition is expected to generate approximately $323 million in revenue for EP2 in the fiscal year ending March 31, 2026, with anticipated double-digit organic growth and a mid to high-teens adjusted EBITDA margin [4]. Strategic Implications - The acquisition will expand Flex's Critical Power portfolio and deepen its presence in utility and power generation markets, aligning with long-term trends such as grid modernization and electrification [3]. - Flex's CEO emphasized that EP2's expertise will enhance the company's ability to deliver innovative power solutions amid increasing demand and complexity in the energy sector [3]. Financial Aspects - The transaction is valued at approximately $1.1 billion, with anticipated tax benefits of around $0.1 billion, resulting in an effective cost of about $1.0 billion after tax benefits [1]. - The deal is expected to close in the first quarter of Flex's fiscal year 2027, pending customary closing conditions [4]. Advisory Roles - Citi is serving as the exclusive financial advisor to Flex, while RA Capital Associates LLC is advising EP2 on the transaction [5].

As filed with the U.S. Securities and Exchange Commission on March 30, 2026. Registration No. 333- (Exact Name of Registrant as Specified in its Charter) _______________________________ | Delaware | 3490 | 33-1881598 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | incorporation or organization) | Classification Code Number) | Identification Number) | 2 Portland Fish Pier Suite 214 Portland, ME 04101 (207) 518-6791 (Address, Including Zip Code, an ...

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