Flex sells its Sheldahl flexible materials unit to Chase Corp, sharpening focus on higher-margin electronics manufacturing. Short interest at 1.8%. Alpha Score 41. Deal expected to close this quarter.
Alpha Score of 41 reflects weak overall profile with strong momentum, poor value, poor quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Flex Ltd. sold its Sheldahl business to Chase Corporation, the company said June 9. Flex said the deal is part of a push to concentrate on higher-growth, higher-margin operations.
Sheldahl designs and manufactures flexible materials used in electronics and industrial applications. Flex did not disclose financial terms of the transaction.
The divestiture follows a broader portfolio review at Flex. The company has been shedding non-core assets to sharpen its focus on electronics manufacturing services and components for automotive and healthcare, along with cloud infrastructure.
Flex shares have a short interest of 1.80% of outstanding shares, according to recent data.
Flex carries an AlphaScala Alpha Score of 41 out of 100, a Mixed rating. FLEX stock page
The Sheldahl sale is the latest in a series of moves by Flex to simplify its structure. In recent years, the company has divested several businesses, including its Multek printed circuit board unit and its iML digital lighting business.
Chase Corporation, the buyer, is a specialty chemicals and materials company. The acquisition adds Sheldahl's flexible materials capabilities to Chase's portfolio of protective and performance materials.
Flex, with annual revenue of roughly $26 billion, is one of the largest electronics manufacturers globally. The Sheldahl unit represents a small portion of that revenue. By selling it, Flex can allocate capital and management attention to faster-growing segments like automotive electrification and medical devices.
Flex said the transaction is expected to close in the current quarter.
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