Power management company Eaton recently completed the acquisition of Royal Power Solutions, a U.S.-based manufacturer of 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, which represents approximately 13.6 times the company’s estimated 2022 EBITDA, the companies said.
“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 for Eaton’s industrial sector. “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 has approximately 450 employees and manufacturing facilities in Carol Stream, Ill., and Queretaro, Mexico, along with a sales and engineering office in Canton, Mich.