Flex, the “Sketch-to-Scale” solutions provider that designs and builds intelligent products for a connected world, announced 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 OEMs around the globe. AGM is headquartered in Troy, Michigan, with additional facilities in the U.S., 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 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 says it intends to fund the acquisition from currently available resources, and remains committed to its target of returning more than 50 percent of annual free cash flow to shareholders.