Eaton announced it has completed the acquisition of Royal Power Solutions, a U.S.-based manufacturer of high-precision electrical connectivity components used 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, according to the announcement.
“Growth opportunities tied to the electrification of our economy are accelerating, and Eaton is fully participating through our mobility and electrical businesses,” says Heath Monesmith, president and CEO, 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,” Monesmith says.
Royal Power Solutions has approximately 450 employees and manufacturing facilities in Carol Stream, Ill., and Queretaro, Mexico, along with a sales and engineering office in Canton, Mich.