AUSTIN,
Texas, Nov. 20, 2024 /PRNewswire/ -- Flex
(NASDAQ: FLEX) announced today that it has completed its previously
announced $325 million all-cash
acquisition of Crown Technical Systems, a leader in fully
integrated power distribution and protection systems.
The acquisition further increases Flex exposure to fast-growing,
margin accretive end-markets, including modular data center
adoption and medium voltage power distribution, and extends the
company's power portfolio into the utility power market.
Additionally, the deal strengthens Flex's critical power portfolio
and supports further growth in the U.S. data center market.
"We are pleased to welcome the Crown Technical Systems team
officially to Flex," said Revathi Advaithi, CEO, Flex. "This
transaction strategically strengthens our unique EMS + Products +
Services data center and power portfolio and expands our presence
in high growth markets to help drive long-term value for our
customers and shareholders."
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. For reporting
purposes, Crown Technical Systems will be included in the
Industrial Business unit inside Flex's Reliability Solutions
segment.
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 the anticipated benefits of
the acquisition of Crown Technical Systems 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; business disruption following the acquisition;
diversion of management time on acquisition- and
integration-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 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