- Leader in custom-engineered, fully integrated power
distribution and protection systems
- Extensive modular solutions and medium voltage switchgear
capabilities are synergistic to the Flex data center power
portfolio
- Extends Flex's presence into the growing utility power market
and supports further growth in the U.S. data center power
market
AUSTIN,
Texas, Oct. 17, 2024 /PRNewswire/ -- Flex
(NASDAQ: FLEX) announced today that it has entered into a
definitive agreement to acquire Crown Technical Systems, a leader
in fully integrated power distribution and protection systems, for
$325 million in an all-cash
transaction. The transaction is expected to be accretive in the
first year after closure.
Crown Technical Systems brings nearly three decades of solving
the most pressing power distribution and control challenges, with
extensive capabilities in modular solutions, medium voltage
switchgear, control, and relay products. Crown Technical Systems
has a diverse set of long-standing customers spanning utilities,
data centers, and power generation, with facilities in California, Texas, and Canada.
"The addition of Crown Technical Systems strengthens our
position to help customers solve power, heat, and scale challenges
in the data center space aligned with our long-term growth
strategy," said Revathi Advaithi, Chief Executive Officer of Flex.
"This acquisition reaffirms our commitment to differentiate our
value through our EMS + Products + Services strategy that will
deliver longer-term shareholder value."
"This deal brings together complementary products and teams,
marking a superb outcome for Crown's employees and customers," said
Norm Siddiqui, President, Crown
Technical Systems. "We are excited to join the Flex team and
accelerate growth through Flex's global reach and strong presence
in markets such as data centers."
This acquisition further increases Flex exposure to
fast-growing, margin accretive end-markets including modular data
center adoption and medium voltage power distribution. It also
extends Flex's power portfolio into the utility power market,
supported by long-term trends in grid modernization and energy
generation growth. At the same time, the acquisition strengthens
Flex's critical power portfolio and accelerates our growth in the
U.S. data center market.
Crown Technical Systems is expected to generate revenue
of approximately $120 million
and high-teens EBITDA margin in fiscal 2025, which ends on
March 31, 2025. The transaction is
expected to close no later than December
2024, subject to customary closing conditions, including
regulatory approval.
Flex management will further discuss the acquisition on its
upcoming earnings call on Wednesday, October
30, 2024, at 7:30 a.m. Central
Time, 8:30 a.m. Eastern
Time.
About Flex
Flex (Reg. No. 199002645H) is the
manufacturing partner of choice that helps a diverse customer base
design and build products that improve the world. Through the
collective strength of a global workforce across 30 countries and
responsible, sustainable operations, Flex delivers technology
innovation, supply chain, and manufacturing solutions to diverse
industries and end markets.
Contacts
Investors & Analysts
David A. Rubin
Vice President, Investor Relations
(408) 577-4632
David.Rubin@flex.com
Media & Press
Jessica Anderson
Director, Corporate Integrated Marketing and
Communications
(408) 577-4789
Jessica.Anderson@flex.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws, including statements related
to our planned acquisition of Crown Technical Systems, the expected
timing for the closing of the acquisition, anticipated benefits of
the acquisition such as revenue and EBITDA generation, and general
business outlook. These forward-looking statements involve
risks and uncertainties that could cause the actual results to
differ materially from those anticipated by these forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements. These risks include: the possibility
that we may not fully realize the projected benefits of the
acquisition in a timely manner or at all; the possibility that
regulatory and other approvals and conditions to the acquisition
are not received or satisfied on a timely basis or at all; the
possibility that the transaction will not close or that the closing
may be delayed; business disruption during the pendency of or
following the acquisition; diversion of management time on
acquisition-related issues; the combined operations may not be
successfully integrated; the reaction of customers and other
persons to the acquisition; and other events that could adversely
impact the completion of the acquisition or the anticipated
benefits of the acquisition, including industry or economic
conditions outside of our control. In addition, actual results
are subject to other risks and uncertainties that relate more
broadly to our overall business, including those more fully
described in our filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K
and in our subsequent filings. The forward-looking statements in
this press release are based on current expectations and Flex
assumes no obligation to update any forward-looking statements.
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SOURCE Flex