Flex announced a definitive agreement to acquire Electrical Power Products, Inc. (EP²) in an all-cash transaction valued at approximately $1.1 billion, or about $1.0 billion net of tax benefits. The deal targets expansion of Flex’s Critical Power portfolio, positioning the company more deeply in utility, power generation, and industrial infrastructure markets. The transaction is expected to close in the first quarter of Flex’s fiscal 2027, pending regulatory approvals.
EP² brings more than three decades of experience in engineered-to-order electrical control and protection systems, including relay panels and modular control buildings used across utility and industrial environments. The company operates a large manufacturing campus in Des Moines, Iowa, and is expected to generate approximately $323 million in revenue for fiscal year 2026, with double-digit growth and mid- to high-teens EBITDA margins. The acquisition adds specialized engineering expertise and long-standing customer relationships in grid infrastructure and power distribution.
Flex said the acquisition aligns with long-term demand drivers including grid modernization, electrification, AI-driven data center expansion, and U.S. reshoring of manufacturing. By integrating EP²’s capabilities, Flex aims to strengthen its role in delivering scalable, engineered power systems for increasingly complex electrical infrastructure, particularly as hyperscale data centers and industrial electrification drive higher power density and reliability requirements.
- Transaction value: ~$1.1B (≈$1.0B after tax benefits)
- EP² FY2026 revenue: ~$323M with double-digit growth
- EBITDA profile: mid- to high-teens margins
- Strategic focus: utility infrastructure, industrial power systems, and data center power
- Manufacturing footprint: Des Moines, Iowa campus
- Expected close: Q1 FY2027 (subject to regulatory approval)
“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.
🌐 Analysis: Flex’s acquisition of EP² reflects a broader shift among manufacturing and infrastructure players toward vertically integrated power solutions, driven by accelerating demand from AI data centers and grid electrification initiatives. The move parallels investments by competitors and partners across the ecosystem—including power, cooling, and electrical balance-of-plant vendors—seeking to capture higher-value segments tied to hyperscale and industrial energy systems.
