Eaton Corporation PLC, a power management company, has reportedly announced the acquisition of Royal Power Solutions, a manufacturer of high-precision electrical connectivity components. Under the agreement, Eaton has paid USD 600 million for Royal Power Solutions, which accounts for nearly 13.6 times the estimated 2022 EBITDA of the company.
According to Heath Monesmith, the President and Chief Operating Officer, Industrial Sector, Eaton, the inclusion of Royal Power Solutions improves the company’s ability to maximize this secular growth trend across its aerospace, eMobility, and electrical businesses.
Royal Power Solutions has nearly 450 employees and manufacturing plants in Queretaro, Mexico, and Carol Stream, Illinois along with an engineering and sales office in Canton, Michigan.
Dublin-based Eaton aims at improving the environment and quality of life through the usage of power management services and technologies. The company offers sustainable solutions that effectively assist its customers in managing hydraulic, electrical, and mechanical power more safely, and reliably.
The Royal Power Solutions acquisition comes a year after Eaton’s successful acquisition of Tripp Lite, its data center hardware and power competitor, for USD 1.65 billion.
Curtiz Gangi, the former Vice President of U.S. channels for data center sales at Eaton stated that the company was positioned number 2 in the power sector. However, with the Tripp Lite acquisition, it nearly doubles its share position.
Recently, Eaton also launched new offerings of the LXP-P series which the company asserted is an advancement over lithium-ion battery capabilities in the UPSes. The company has been making calculated acquisitions to expand the product offerings and overall business.
For instance, Eaton acquired Green Motion, a manufacturer of electric vehicle charging software and hardware. This expanded the company’s EV charging infrastructure and will enable Eaton to benefit from the energy shift. Currently, the company focuses on reducing emissions related to transportation.