SINGAPORE (dpa-AFX) - Flex (FLEX) announced it has entered into a definitive agreement to acquire AGM Automotive, a global supplier of automotive interior components and systems, including overhead console systems, interior lighting, electronic components and textile flooring solutions. AGM is a trusted design partner of major OEMs around the globe. AGM is headquartered in Troy, Michigan, with additional facilities in the US, Mexico, Costa Rica, Austria and China.
The acquisition is expected to close in the second quarter of calendar year 2017. 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.
Chris Obey, president of Automotive at Flex, said: '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.'
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