Houlihan Lokey Advises Royal Power Solutions

Houlihan Lokey is pleased to announce that Royal Power Solutions (Royal), a portfolio company of IGP Industries (IGP), has been acquired by Eaton (NYSE:ETN). The transaction closed on January 5, 2022.

Royal is a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicles, energy management, industrial, and mobility markets. Under IGP’s ownership, Royal continued to execute its strategic plan to become a market leader within the North American custom-designed electrical components market for automotive, industrial, and commercial vehicle applications. 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. Royal has approximately 450 employees and is headquartered in Carol Stream, Illinois, with additional facilities in Canton, Michigan, and Queretaro, Mexico.

IGP, 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.

Houlihan Lokey served as the exclusive financial advisor to Royal and assisted in initiating, structuring, and negotiating the transaction on its behalf. This is Houlihan Lokey’s second time advising Royal, having previously advised on the company’s sale to IGP. This transaction builds on Houlihan Lokey’s successes and expertise in industrial technologies, automotive, and electrical connectivity transactions.