Eaton to Combine Mobility Group with Dana for Over $10B
Eaton Corp plc announced it is combining its Mobility Group with Dana Incorporated in a Reverse Morris Trust transaction, creating a combined company valued at over $10 billion. This strategic move aims to enhance Eaton's focus on its higher-growth Electrical and Aerospace businesses. The transaction is expected to be immediately accretive to Eaton's organic growth rate and operating margins upon closing, anticipated in the first quarter of 2027. Eaton will receive approximately $1.1 billion in cash and its shareholders will own at least 50.1% of the combined entity.
Key Highlights
- Eaton to combine its Mobility Group with Dana Incorporated in a Reverse Morris Trust transaction.
- The combined company is valued at over $10 billion in enterprise value.
- Eaton's Mobility Group is valued at approximately $5.1 billion.
- Eaton to receive approximately $1.1 billion in cash distribution.
- Eaton shareholders will own at least 50.1% of the combined company.
- The combined company expects to generate approximately $11 billion in pro forma revenue.
- The transaction is expected to close in the first quarter of 2027.
Price Impact
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