Intelligent power management company Eaton has announced a definitive agreement to combine its Mobility Group with Dana Incorporated through a Reverse Morris Trust transaction, creating a global mobility technology enterprise valued at more than $10 billion. The move marks a significant milestone in Eaton’s ongoing portfolio transformation and strengthens its long-term growth strategy focused on high-value industrial sectors.
Upon completion of the transaction, Eaton will sharpen its strategic focus around its Electrical and Aerospace businesses, sectors that are benefiting from major global trends including electrification, digital infrastructure expansion, artificial intelligence-driven data center investments, aerospace aftermarket demand, and increased defense spending.
The transaction follows a series of strategic initiatives undertaken by Eaton to enhance its market position. Recent acquisitions in aerospace electronic controls and liquid-cooling technologies have expanded the company’s capabilities in fast-growing markets while reinforcing its commitment to innovation-led growth.
Under the agreement, Eaton’s Mobility Group will merge with Dana, creating a combined company with an estimated annual revenue of approximately $11 billion and projected adjusted EBITDA of around $1.7 billion in 2026, including anticipated operational synergies.
Eaton Chief Executive Officer Paulo Ruiz said the agreement represents a major step in executing the company’s 2030 strategy.“This transaction creates meaningful value for our shareholders while enabling Eaton to focus on businesses that offer strong growth opportunities and attractive margins. We are positioning the company to capitalize on long-term trends that are reshaping industries worldwide,” Mr Ruiz said.
The combined mobility company will offer a broad portfolio of drivetrain, propulsion, electrification and power management technologies serving both commercial vehicle and passenger vehicle manufacturers. By bringing together complementary capabilities from both organizations, the new entity will strengthen its ability to support customers across conventional, hybrid and electric vehicle platforms.
Dana Chairman and Chief Executive Officer R Bruce McDonald said the combination will create a differentiated mobility technology platform capable of delivering greater value to customers and shareholders. The combined company is expected to realize approximately $250 million in annual cost synergies within two years of closing while benefiting from expanded global reach, broader customer relationships and a stronger aftermarket presence.
The transaction values Eaton’s Mobility Group at approximately $5.1 billion. Eaton shareholders will own at least 50.1 percent of the combined organization following completion. Eaton will also receive a cash distribution of approximately $1.1 billion, which will support its capital allocation priorities and balance sheet strategy.
Eaton is a global intelligent power management company committed to improving quality of life and safeguarding the environment through innovative technologies and sustainable solutions. The company serves a diverse range of industries, including data centers, utilities, industrial manufacturing, commercial and institutional buildings, machine construction, residential infrastructure, aerospace, and mobility.
Driven by a strong commitment to responsible business practices, Eaton develops products and solutions that help customers manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. The company focuses on enabling reliable, resilient and energy-efficient operations across critical sectors while supporting customers in meeting their performance and sustainability goals.
