Industrial Growth Partners has sold Royal Power Solutions to Eaton for $600 million. Based in Carol Stream, Illinois, Royal is a maker of electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets.
San Francisco, CA – Industrial Growth Partners (“IGP”) is pleased to announce the sale of Royal Power Solutions (“Royal” or the “Company”) to Eaton (NYSE: ETN) for $600 million in a transaction that closed on January 5, 2022.
Royal, headquartered in Carol Stream, IL, is a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets.
Original Acquisition Details
IGP, together with members of the management team and the selling shareholders, recapitalized Royal in April 2017. Since that time, Royal has continued to execute on its strategic plan to become a market leader within the North American custom-designed electrical components market for automotive, industrial and commercial vehicle applications. During IGP’s ownership, Royal invested heavily in human capital, manufacturing capacity, an innovation lab for new product development and design and technical capabilities. Additionally, Royal completed two strategic add-on acquisitions that expanded and strengthened customer relationships, enhanced product capabilities, added manufacturing capacity and grew the Company’s presence in new end markets. These strategic investments and acquisitions, alongside the Royal management team’s consistent ability to execute on the Company’s long-term strategic plan, positioned Royal for its next phase of growth.
Randy Ross, CEO of Royal, commented: “IGP proved to be an incredibly valuable partner during its ownership. IGP’s industrial investment expertise and focus on a long-term plan enabled us to advance our capabilities, add key talent, launch several new proprietary product categories, expand our manufacturing footprint internationally and grow our presence in new end markets. IGP was an outstanding steward of Royal and provided the support and resources to enhance our customer relationships and achieve our long-term strategic goals.”
Industrial Growth Partners, founded in 1997, is a San Francisco-based private equity investment firm with over $2.2 billion of equity capital raised since inception. The firm invests exclusively in middle-market companies in the industrial sector in partnership with management teams.