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Eaton Buys EV Component Manufacturer

Jan. 6, 2022
News in the electric vehicle market.

Eaton  completed the acquisition of Royal Power Solutions, a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management and 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.

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 COO of 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.”

Royal Power Solutions has approximately 450 employees and manufacturing facilities in Carol Stream, IL, and Queretaro, Mexico, along with a sales and engineering office in Canton, MI.