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Power management company Eaton has acquired a U.S.-based firm that produces components for the electric vehicle sector.
Dublin-based Eaton on Jan. 6 announced the $600 million purchase of Royal Power Solutions, a Carol Stream, Ill.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. Eaton said the purchase will allow its eMobility group to expand in the emerging EV sector.
We’re excited to announce we've acquired Royal Power Solutions, a global leader in power distribution and transmission. @RoyalPowerTech enhances our ability to capitalize on electrification across our businesses. Learn more: https://t.co/52FvCM3swN pic.twitter.com/gRPfMaXGoH— Eaton (@eatoncorp) January 5, 2022
“Growth opportunities tied to the electrification of our economy are accelerating, and Eaton is fully participating through our mobility and electrical businesses,” Eaton Industrial Sector Chief Operating Officer Heath Monesmith said. “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.”
Eaton Vehicle Group President João Faria told Transport Topics that Royal Power’s lineup of electrical components was especially important.
“This company has demonstrated big growth in the last nine years or so, growing in a huge number and bringing significant technologies and innovations the market [is] using today for new applications,” Faria said.
Royal Power Solutions has 450 employees and manufacturing facilities in its hometown as well as in Queretaro, Mexico, along with an engineering and sales office in Canton, Mich.
This purchase comes just one year after Eaton acquired power and data center hardware competitor Tripp Lite for $1.65 billion. Tripp Lite is a supplier in the power and data center sector with products that range from uninterruptible power supply systems to fiber optic network cables to rack power distribution units.
Eaton said it plans to keep the Royal Power Solutions management and employment team in place.
Recently, Eaton announced a $4.9 million award from the U.S. Department of Energy for development of solutions to reduce the cost and complexity of deploying direct current (DC) fast electric vehicle charging infrastructure (EVCI).
Under the three-year program, Eaton reported it will develop and demonstrate what it termed a “novel, compact and turnkey solution” for DC fast-charging infrastructure that it anticipates would reduce costs by 65% through improvements in power conversion and grid interconnection technology, charger integration and modularity, and installation time.
With integrated energy management and charge-control software, the EVCI solution also will help avoid peak energy costs by accurately forecasting and managing electrical demand, the company added.
To support its EVCI solution, Eaton noted it will develop a unique solid-state transformer design and modular chargers packaged on a compact skid — expediting installation, reducing required equipment, and minimizing deployment cost and footprint. The Eaton solid-state transformer technology will enable direct connection to the utility medium-voltage distribution system to eliminate the need for additional power conversion devices and associated commissioning.
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Eaton is leading the project with partners that include the National Renewable Energy Lab, North Carolina State University, the University of Pittsburgh, ITC Holdings and Calstart.
In the third quarter of 2021 Eaton reported a 9% year-over-year increase and record quarterly sales of $4.9 billion.
“We had a record third quarter, driven by strong operational performance despite supply constraints that impacted our organic sales growth,” Eaton CEO Craig Arnold said in a statement. “Still, we saw encouraging signs, including robust order growth of 17% on a rolling 12-month basis and record backlogs up more than 50% in our combined Electrical Americas and Electrical Global segments. Our segment margins in the third quarter were 19.9%, an all-time record.”
Senior Reporter Roger Gilroy contributed to this report.
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