SAN JOSE, Calif., Feb. 21, 2017 /PRNewswire/ -- Flex (NASDAQ:
FLEX), the Sketch-to-Scale™ solutions provider that designs
and builds intelligent products for a connected world, announced
today that it has entered into a definitive agreement to acquire
AGM Automotive (AGM).
AGM is a leading global supplier of automotive interior
components and systems, including overhead console systems,
interior lighting, electronic components and textile flooring
solutions. Providing high quality and innovative automotive
interior solutions, AGM is a trusted design partner of major
Original Equipment Manufacturers (OEMs) around the globe. AGM is
headquartered in Troy, Michigan,
with additional facilities in the US, Mexico, Costa
Rica, Austria and
China.
"AGM is a highly respected, award-winning provider of automotive
interior components and systems," said Chris Obey, president of Automotive at Flex.
"This strategic acquisition will complement and expand our
automotive offerings, particularly in lighting, and will further
strengthen certain key strategic customer relationships. The
addition of AGM will enhance our ability to provide customers with
more complete solutions for innovative interior lighting systems,
from plastics through electronics, and drive greater growth of our
dollar content per vehicle."
"AGM is excited to be joining Flex," said Robert M. Blinstrub, president and CEO of
AGM.
"With Flex's solid automotive business, broad global footprint
and strong culture of forward-looking technological innovation, our
integrated offering will increase our reputation as a provider of
world-class automotive solutions to our customers," he added.
The acquisition is expected to close in the second quarter of
calendar year 2017. Additional terms of the deal were not
disclosed. Completion of the transaction is subject to customary
closing conditions, including regulatory approvals. The transaction
will be immediately accretive to EPS and generate positive free
cash flow. Flex intends to fund the acquisition from
currently available resources, and remains committed to its target
of returning over 50% of annual free cash flow to shareholders.
About Flex
Flex is the Sketch-to-Scale™ solutions provider that
designs, manufactures and distributes intelligent products for a
connected world™. With approximately 200,000 professionals
across 30 countries, Flex provides innovative design, engineering,
manufacturing, real-time supply chain insight and logistics
services to companies of all sizes in various industries and
end-markets. For more information, visit flex.com or follow us on
Twitter @flexintl. Flex – Live Smarter™
This press release contains forward-looking statements,
including statements that involve risks and uncertainties
concerning Flex's proposed acquisition of AGM, anticipated benefits
such as accretive growth, cash flow and general business outlook.
When used in this document, the words "anticipate," "believe,"
"could," "estimate," "expect," "forecast," "intend," "plan,"
"potential," "project," "target," "look forward to," "may," "will,"
"intend," and similar expressions and any other statements that are
not historical facts are intended to identify those assertions as
forward-looking statements. Any such statements may be influenced
by a variety of factors, many of which are beyond the control of
Flex or AGM, that could cause actual outcomes and results to be
materially different from those projected, described, expressed or
implied in this document due to a number of risks and
uncertainties. Potential risks and uncertainties include, among
others, the possibility that the transaction will not close or that
the closing may be delayed, the anticipated synergies of the
combined companies may not be achieved after closing, the combined
operations may not be successfully integrated in a timely manner,
if at all, general economic conditions in regions in which either
company does business may deteriorate and/or Flex or AGM may be
adversely affected by other economic, business, and/or competitive
factors. Accordingly, no assurances can be given that any of the
events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what impact they will have on
the results of operations or financial condition of Flex or AGM.
You are cautioned to not place undue reliance on
forward-looking statements, which speak only as of the date of this
release. Neither Flex nor AGM is under any duty to update any of
the information in this release.
Contacts:
|
|
Flex:
|
|
Renee
Brotherton
|
Kevin
Kessel
|
Corporate
Communications
|
Investor
Relations
|
(408) 576-7189
| (408) 576-7534
|
(408)
576-7985
|
renee.brotherton@flextronics.com
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kevin.kessel@flextronics.com
|
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SOURCE Flex