Eaton has agreed to combine its Mobility Group with Dana Incorporated in a Reverse Morris Trust transaction valued at approximately US$5.1bn, with a combined enterprise value of over US$10bn. The deal is expected to close in the first quarter of 2027, creating an entity with projected pro forma revenue of US$11bn.

Eaton shareholders will own at least 50.1% of the combined company and Eaton will receive a US$1.1bn cash distribution. The deal is expected to be immediately accretive to Eaton’s growth rate and margins, with US$250m in run-rate cost savings targeted within 24 months of closing.

In a statement, R. Bruce McDonald, Chairman and Chief Executive Officer of Dana, said: “We are excited to bring together Eaton’s Mobility Group with Dana. The addition of Mobility Group’s leading positions in commercial vehicle transmissions, clutches, and power management technologies, combined with Dana’s strengths in axles, driveshafts, electrification, thermal management, and sealing products, will create a truly differentiated global platform. Together, we will be better positioned to serve our customers, invest in innovation, and drive long-term value creation for shareholders of the combined company.”

Post-completion, Eaton will concentrate on its Electrical and Aerospace businesses, targeting data centres, infrastructure and defence.

Source: Eaton