Power management company Eaton and automotive supplier Dana have signed a definitive agreement to combine Eaton’s Mobility Group with Dana, in a deal valuing the combined business at more than $10bn.
Under the terms of the agreement, Eaton’s Mobility Group has been valued at approximately $5.1bn.
The combination will bring together Eaton Mobility’s commercial vehicle transmissions, engine and emissions products, and advanced electrification capabilities with Dana’s global powertrain, thermal, and sealing technologies.
For Eaton, the move forms part of its wider 2030 growth strategy, enabling the company to focus on its electrical and aerospace divisions.
The separated unit will merge with a Dana subsidiary, leaving Dana as a wholly owned subsidiary of the Mobility Group once the deal completes.
Upon completion, Eaton’s existing shareholders will own at least 50.1% of the combined entity, while Dana shareholders will hold approximately 49.9%.
Dana incoming CEO Byron Foster said: “By expanding our presence in core markets with new products and complementary technologies, we are enhancing our ability to deliver greater value to customers while strengthening margins through a more balanced portfolio and meaningful synergies.”
The agreement has received unanimous approval from the boards of both companies, and the transaction is structured to be tax-free for US federal income tax purposes.
Eaton is also set to receive a cash distribution of roughly $1.1bn, subject to adjustments linked to cash and debt levels, which will be financed through new debt raised by the Mobility Group prior to closing.
Once the transaction is complete, the merged company will operate under the Dana Incorporated name and continue to be listed on the New York Stock Exchange.
On the leadership front, Dana’s chairman, R. Bruce McDonald, will take on the role of executive chairman for the combined company, overseeing integration and synergy delivery, while Byron Foster will serve as CEO.
Both appointments will take effect from 1 July 2026.
The board of the combined company will consist of all existing Dana board members, joined by three designees from Eaton.
The deal is expected to close in the first quarter of 2027, pending approval from Dana shareholders, regulatory clearances and other customary conditions.
Eaton CEO Paulo Ruiz added: “Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our electrical and aerospace businesses, and we look forward to continuing our momentum to drive meaningful value for our customers and shareholders.”