Flex has entered into a definitive agreement to acquire AGM Automotive (AGM).
AGM is a global supplier of automotive interior components and systems, including overhead console systems, interior lighting, electronic components and textile flooring solutions.
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The supplier 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 Flex Automotive president, Chris Obey. “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 interior lighting systems, from plastics through electronics and drive greater growth of our dollar content per vehicle.”
The acquisition is expected to close in the second quarter of calendar year 2017, although 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 more than 50% of annual free cash flow to shareholders.
