Flex Announces Agreement to Acquire Electrical Power Products (EP²)

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Flex announced that it has entered into a definitive agreement to acquire Electrical Power Products, Inc. (EP2), a leading provider of engineered-to-order electrical power control and protection systems. The all-cash transaction is valued at approximately $1.1 billion and also reflects anticipated tax benefits valued at approximately $0.1 billion (approximately $1.0 billion after tax benefits). The transaction is expected to be accretive to adjusted EPS in the first full fiscal year after close.

EP2 has more than 35 years of experience designing, integrating, and manufacturing highly engineered control and relay panels and modular, integrated control buildings for utility, power generation, and industrial customers. EP2 serves a diverse set of longstanding customers and operates a scaled manufacturing campus in Des Moines, Iowa.

"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," said Revathi Advaithi, Chief Executive Officer of Flex. "As utilities operators navigate unprecedented demand and complexity, EP2's engineered-to-order expertise and customer centric approach will strengthen our ability to deliver dependable, scalable, and innovative power solutions."

"This agreement positions EP2 to accelerate growth while continuing our customer focused, engineering driven culture," said Tim O'Donnell, President of EP2. "Flex's scale, global capabilities, and commitment to investment support long‑term opportunity for our employees and customers. We look forward to joining Flex and building on our momentum."

This acquisition complements and expands Flex's exposure to high-growth, margin-accretive end markets shaped by long-term trends such as grid modernization, electrification, data center buildout, and U.S. reshoring. It broadens the Critical Power portfolio, deepens Flex's utility presence, and enhances engineered-to-order power distribution and control capabilities.

EP2 is expected to generate revenue of approximately $323 million in fiscal year ending March 31, 2026, with anticipated double digit organic growth and a mid to high-teens adjusted EBITDA margin profile. The transaction is expected to close in the first quarter of Flex's fiscal year 2027, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act.

Flex management will further discuss the acquisition on its upcoming earnings call.

Citi is serving as exclusive financial advisor to Flex. RA Capital Associates LLC is serving as exclusive financial advisor to Electrical Power Products, Inc.