Eaton, the Dublin-based power management company with operations in Southfield, announced it has completed the acquisition of high-precision electrical connectivity component manufacturer Royal Power Solutions (RPS) for $600 million, 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,” says Heath Monesmith, president and COO of the industrial sector at Eaton.
“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.”
Based in Carol Springs, Ill., RPS has around 450 employees and manufacturing facilities in its home city, Queretaro, Mexico, along with a sales and engineering office in Canton Township. It serves the electric vehicle, energy management, industrial, and mobility markets.
It develops attaching technologies, computer aided engineering software tools, product and tooling design, and offers product testing. It manufactures insert molding, automated assembly technologies, large and heavy gauge stamping, precision stamping, and die construction.
Eaton, which has around 300 employees in Southfield, provides sustainable solutions to help effectively manage electrical, hydraulic, and mechanical power more safely and reliably. Eaton’s 2020 revenue was $17.9 billion, it sells products to customers in more than 175 countries, and has approximately 85,000 employees.