DealsJun 11, 2026, 06:46 AM
Dana to Combine with Eaton Mobility for $5.1B, Creating Powertrain Leader
AI Summary
Dana Incorporated announced a definitive agreement to combine with Eaton's Mobility business in a Reverse Morris Trust transaction, creating a premier global powertrain leader with approximately $11 billion in sales and $1.7 billion in adjusted EBITDA on a pro forma basis. The deal values Eaton Mobility at $5.1 billion and is expected to generate $250 million in run-rate synergies within 24 months. Eaton shareholders will own at least 50.1% of the combined entity, which will accelerate Dana's 2030 strategy with increased sales and margin targets. The transaction is anticipated to close in the first quarter of 2027.
Key Highlights
- Dana Incorporated to combine with Eaton's Mobility business in a Reverse Morris Trust transaction.
- The combined company is expected to have approximately $11 billion in sales and $1.7 billion in adjusted EBITDA on a pro forma basis.
- The transaction values Eaton Mobility at approximately $5.1 billion, with an enterprise value for the combined company over $10 billion.
- The combined company is projected to achieve $250 million in run-rate synergies within 24 months post-closing.
- Eaton shareholders are expected to own at least 50.1% and Dana shareholders approximately 49.9% of the combined company at close.
- Dana's 2030 targets are increased to $14-$15 billion in sales, approximately 18% adjusted EBITDA margin, and an 8%-9% adjusted free cash flow margin.
- The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals.
Price Impact
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