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Flex has entered into a definitive agreement to acquire AGM Automotive (AGM), a 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."
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.
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™