Power management giant Eaton has acquired electrical connectivity specialist Royal Power Solutions for $600 million in a move to boost the entire company’s energy management, industrial and mobility businesses.
The acquisition comes just one year after Eaton’s blockbuster acquisition of fellow power and data center hardware competitor Tripp Lite for $1.65 billion.
Heath Monesmith, president and chief operating officer of Eaton’s Industrial Sector, said growth opportunities tied to the “electrification” of the economy are accelerating, which Eaton is leveraging through its mobility and electrical portfolios.
“The addition of Royal Power Solutions enhances our ability to capitalize on this secular growth trend across our eMobility, aerospace and electrical businesses,” Monesmith said in a statement.
Carol Stream, Ill.-based Royal Power Solutions manufactures electrical connectivity components used in industrial, mobility, electric vehicle and energy management markets. The company has 450 employees and manufacturing facilities in its hometown as well as in Mexico, along with an office in Michigan.
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
Eaton’s acquisition of Royal Power Solutions comes after one of the company’s most significant acquisitions in its data center history with the buy of Tripp Lite in 2021. Tripp Lite is a leading supplier of power and data center infrastructure offerings with a portfolio that includes more than 5,000 products ranging from UPSes and fiber network cables to rack power distribution units and enclosures.
“Eaton already had a No. 2 position in power, but with the acquisition of Tripp Lite, it actually almost doubles our share position. So as Schneider [Electric] has kept their No. 1 position for a long time—and some of its been degraded over time—we’ve become a true position player in this market with the breadth of the portfolio that we have, as well as that share position,” Curtiz Gangi, Eaton’s former vice president of U.S. channels for data center sales, told CRN in August. Gangi became Ingram Micro’s director of global partner engagement for Dell and VMware in October.
Eaton reported record quarterly results in November for its third fiscal quarter. The company generated sales of $4.9 billion, an increase of 9 percent year over year.
“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 percent on a rolling 12-month basis and record backlogs up more than 50 percent in our combined Electrical Americas and Electrical Global segments. Our segment margins in the third quarter were 19.9 percent, an all-time record.”
Dublin, Ireland-based Eaton also recently launched new LXP-P series offerings it said is a leap forward for lithium-ion battery capabilities in its UPSes. The new UPSes are comprised of lightweight battery cabinets with pre-installed batteries using lithium-ion phosphate technology that enables users in large facilities across industries to effectively leverage lithium-ion UPS offerings to protect critical infrastructure from outages.