Eaton Spins Off Automotive Business into Dana

[M&A] Eaton merges its Mobility business into Dana for $5.1 billion, creating a global leader in powertrain systems.

Core Development: Reverse Morris Trust Structure Completes Integration

The transaction employs the Reverse Morris Trust structure commonly used in U.S. equities. Eaton first spun off its Mobility Group and distributed it to shareholders, which then merged with Dana. The combined company retains the name "Dana" and continues trading on the New York Stock Exchange.

Key Metrics: Combined Enterprise Value Exceeds $10 Billion

The Eaton Mobility business is valued at $5.1 billion. The new company is projected to generate $11 billion in revenue by 2026, with adjusted EBITDA of approximately $1.7 billion. Eaton shareholders hold a slight majority stake in the combined entity and receive a cash distribution of about $1.1 billion.

Strategic Rationale: Focus on Core Segments in Electrical and Aerospace

Following the divestiture of its internal combustion engine and electric vehicle businesses—which had long weighed on growth—Eaton will concentrate on its Electrical and Aerospace segments, both poised to benefit from AI-driven data center expansion. Meanwhile, Dana strengthens its electrification solutions by integrating Eaton’s commercial vehicle transmissions with its own thermal management technologies.