Dana to Combine With Eaton Mobility in $5.1 Billion Deal, Creating $11 Billion Powertrain Supplier
Updated
Updated · dana.com · Jun 11
Dana to Combine With Eaton Mobility in $5.1 Billion Deal, Creating $11 Billion Powertrain Supplier
3 articles · Updated · dana.com · Jun 11
Summary
$5.1 billion is the agreed value for Dana’s combination with Eaton’s Mobility business, a Reverse Morris Trust deal expected to close in Q1 2027.
The tie-up would create a commercial- and light-vehicle powertrain supplier with about $11 billion in pro forma 2026 sales, $1.7 billion in adjusted EBITDA and a 15% margin.
Eaton shareholders will own at least 50.1% of the combined company, while Eaton is set to receive about $1.1 billion in cash funded by new debt.
Dana said the combined company should generate $250 million in annual run-rate synergies within 24 months and keep net leverage near 1.2x.
The deal also lifts Dana’s 2030 targets to $14 billion-$15 billion in sales, about 18% adjusted EBITDA margin and 8%-9% adjusted free-cash-flow margin.
Beyond the $250M in savings, what are the hidden integration risks in this powertrain deal?
Can this new $11 billion powertrain giant pivot fast enough to win the global EV race?
Dana and Eaton Mobility Announce $5.1B Merger, Targeting $11B Sales and Industry Leadership
Overview
On June 11, 2026, Dana Incorporated and Eaton Mobility announced a definitive agreement to merge, creating a new global leader in powertrain solutions. The transaction values Eaton Mobility at approximately $5.1 billion and is structured as a Reverse Morris Trust, aiming to optimize financial benefits for both companies. The combined entity is projected to achieve about $11 billion in sales and $1.7 billion in adjusted EBITDA, with a 15% adjusted EBITDA margin on a pro forma 2026 basis. This merger positions the new company for significant growth and industry leadership, with an estimated enterprise value exceeding $10 billion.