Power management company Eaton has acquired Royal Power Solutions, a US-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.

Growth opportunities tied to the electrification of our economy are accelerating, and Eaton is fully participating through our mobility and electrical businesses. The addition of Royal Power Solutions enhances our ability to capitalize on this secular growth trend across our eMobility, aerospace and electrical businesses.

—Heath Monesmith, president and chief operating officer, Industrial Sector, 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.