Power management company Eaton Corporation (NYSE:ETN) recently revealed that it has acquired electrical connectivity components manufacturer Royal Power Solutions for $600 million. The consideration paid reflects about 13.6 times the company’s likely 2022 EBITDA.
The acquisition of Royal Power is expected to complement Eaton’s operations, as the company provides its high-precision electrical connectivity components to electric vehicles, energy management, industrial and mobility markets.
Moreover, Royal Power has about 450 employees with manufacturing facilities in Carol Stream, Illinois, and Queretaro, Mexico, along with a sales and engineering office in Canton, Michigan.
The Chief Operating Officer, Industrial Sector of Eaton, Heath Monesmith, said, “Growth opportunities tied to the electrification of our economy are accelerating, and Eaton is fully participating through our mobility and electrical businesses. 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.”
See Top Smart Score Stocks on TipRanks >>
Recently, Wells Fargo analyst Joe O’Dea reiterated a Hold rating on the stock with a price target of $180, which implies upside potential of 6.5% from current levels.
Wall Street’s Top Analysts have awarded Eaton a Moderate Buy consensus rating based on 7 Buys and 4 Holds. The average Eaton price target of $183.09 implies upside potential of 8.3% from current levels. Shares have gained 33.7% over the past year.
Download the TipRanks mobile app now
Voyager Digital Announces Estimated Revenue for Q2
Pfizer to Supply U.S. Government with 10M Additional Courses of PAXLOVID
Ford to Ramp Up Electric F-150 Lightning Pickup Production; Shares Jump