Flex announced it has entered into a definitive agreement to acquire Electrical Power Products, Inc. (EP2), a provider of engineered-to-order electrical power control and protection systems, in an all-cash transaction valued at approximately $1.1 billion, including anticipated tax benefits.
The deal is expected to strengthen Flex’s position in critical power infrastructure, particularly across utilities, power generation, and industrial markets. EP2 brings more than 35 years of experience in designing and manufacturing control and relay panels as well as modular integrated control buildings. The company operates a large manufacturing campus in Des Moines, Iowa, and maintains long-standing customer relationships.
Flex said the acquisition will significantly expand its Critical Power portfolio, adding engineering expertise, a Midwest manufacturing footprint, and deeper capabilities in power distribution and control systems. The move aligns with long-term industry trends including grid modernization, electrification, data center expansion, and U.S. reshoring.
EP2 is projected to generate approximately $323 million in revenue for the fiscal year ending March 31, 2026, with expected double-digit organic growth and mid- to high-teens adjusted EBITDA margins.
The transaction is anticipated to close in the first quarter of Flex’s fiscal year 2027, subject to regulatory approvals and customary closing conditions. Flex expects the acquisition to be accretive to adjusted earnings per share in the first full fiscal year after closing.
Support: Citi is serving as exclusive financial advisor to Flex, while RA Capital Associates LLC is advising Electrical Power Products.
KEY QUOTES:
“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. 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.”
Revathi Advaithi, Chief Executive Officer of Flex
“This agreement positions EP2 to accelerate growth while continuing our customer focused, engineering driven culture. 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.”
Tim O’Donnell, President of Electrical Power Products, Inc.
