Power management company Eaton has completed the acquisition of Royal Power Solutions, a US-based manufacturer of high-precision electrical connectivity components.
A release by Eaton said that the components produced by Royal Power find application in electric vehicle, energy management, industrial and mobility markets. Under the terms of the agreement, Eaton paid $600 million for Royal Power Solutions, which represents approximately 13.6 times the company’s estimated 2022 EBITDA.
The portfolio addition with Royal Power Solutions positions Eaton to capitalize on electrification trends across multiple high-growth markets.
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“Growth opportunities tied to the electrification of our economy are accelerating, and Eaton is fully participating through our mobility and electrical businesses,” said Heath Monesmith, president and chief operating officer, Industrial Sector, Eaton.
“And the addition of Royal Power Solutions enhances our ability to capitalize on this secular growth trend across our eMobility, aerospace and electrical businesses. We are excited to welcome Royal Power Solutions to Eaton.”
Royal Power Solutions has approximately 450 employees and manufacturing facilities in Carol Stream, Illinois, and Queretaro, Mexico, along with a sales and engineering office in Canton, Michigan, the release noted.
Featured photograph shows stamping facilities at one of the manufacturing facilities of Royal Power Solutions. (Photo: royalpowersolutions.com)