Power management company Eaton announced it has acquired Royal Power Solutions, an Illinois-based maker of electrical connectivity components used in the electric vehicle, energy management, industrial and mobility markets, for $600 million.
Royal has in-house injection molding and insert molding, with seven injection molding machines, according to its website.
Eaton, which is based in Dublin, Ireland, but has major North American operations headquartered in Beachwood, Ohio, said in a news release Jan. 5, that the $600 million price "represents approximately 13.6 times" Royal Power's estimated 2022 earnings before interest, taxes, depreciation and amortization, or EBITDA. That would place Royal Power's EBITDA at around $44.1 million.
In the release, Eaton said Royal Power has about 450 employees and manufacturing facilities in Carol Stream, Ill., and Querétaro, Mexico, along with a sales and engineering office in Canton, Mich..
Heath Monesmith, president and chief operating officer of Eaton's Industrial Sector, said in a statement that the addition of Royal Power "enhances our ability to capitalize on the secular growth trend across our eMobility, aerospace and electrical businesses."
Eaton's 2020 revenues were $17.9 billion. It has 85,000 employees and sells products to customers in more than 175 countries.
Eaton stock closed trading on Wednesday at $169.01 per share, down $2.45, or 1.43%, from the close on Tuesday, Jan. 4. The stock's 52-week high is $175.72, while the 52-week low is $114.01.