Eaton Corporation Announces Strategic Move to Combine Mobility Group with Dana Incorporated

On June 11, 2026, Eaton Corp PLC (NYSE: ETN) revealed a significant strategic decision aimed at advancing its 2030 growth strategy. The intelligent power management company has entered into a definitive agreement with Dana Incorporated (NYSE: DAN) to combine Eaton’s Mobility Group with Dana. This strategic transaction is structured as a Reverse Morris Trust (RMT), establishing a combined entity that is valued at over $10 billion.

The separation of Eaton’s Mobility Group is a pivotal move in the company’s ongoing portfolio transformation. Following the closure of this transaction, Eaton plans to concentrate its operations on its Electrical and Aerospace segments, which are closely aligned with key growth trends such as electrification, digitalization, and infrastructure modernization. This strategic focus will be further enhanced by Eaton's recent acquisitions of Ultra PCS and Boyd Thermal, which bolster its capabilities in aerospace electronic controls and data center cooling solutions.

Eaton's CEO, Paulo Ruiz, expressed enthusiasm regarding the agreement, stating, “We are pleased to have reached this agreement, which delivers significant value to Eaton and its shareholders… Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our Electrical and Aerospace businesses.”

The merger will create a formidable global engineered solutions partner, benefitting from a comprehensive suite of drivetrain, electrification, and power management solutions tailored for commercial vehicle manufacturers. The combined company anticipates generating approximately $11 billion in pro forma revenue and an estimated $1.7 billion in pro forma adjusted EBITDA for 2026, which includes run-rate synergies expected to be fully realized within 24 months.

The merger is projected to yield $250 million in annual cost synergies, diversifying the customer base and enhancing resilience across various market cycles. The combined company will also expand its aftermarket presence, contributing to stable revenue streams.

Ruiz emphasized the value creation potential of this merger, stating, “We are proud of our mobility team and what they have built and are confident the combination of talent, capabilities, and technologies will create meaningful value for shareholders, customers, and employees alike.”

Eaton’s Mobility Group is valued at approximately $5.1 billion in the transaction, reflecting a multiple of 8.3x the estimated pro forma adjusted EBITDA for 2026, or 5.9x on a fully synergized basis. Following the transaction, Eaton shareholders will receive newly issued shares of the combined company, ensuring they maintain at least 50.1% ownership.

The transaction will be executed through a Reverse Morris Trust structure. Eaton will first separate its Mobility Group, distributing shares to its shareholders either through a split-off or spin-off, followed by a merger with Dana. This approach is intended to be tax-free for U.S. federal income tax purposes.

The agreement has received unanimous approval from both Eaton's and Dana's boards of directors. The transaction is expected to close in the first quarter of 2027, pending shareholder approval from Dana and necessary regulatory clearances.

The leadership of the combined entity will see Byron Foster, Dana’s incoming CEO, and Timothy Kraus, Dana’s current CFO, taking the helm as CEO and CFO, respectively. Erin Rowse from Eaton will step in as Chief Human Resources Officer. The governance structure will include an expanded board of directors, with Eaton appointing three additional members.

Eaton’s decision to merge its Mobility Group with Dana marks a transformative step in its corporate strategy, reinforcing its commitment to focus on high-growth areas and enhancing shareholder value.

In conclusion, Eaton’s strategic maneuver to combine its Mobility Group with Dana Incorporated not only aligns with its long-term growth vision but also positions the new entity as a robust player in the global market, ready to capitalize on the evolving demands of the power management landscape.