Dana to Combine With Eaton’s Mobility Business in $5.1 Billion Deal

Dana said it agreed to harvester with Eaton's Mobility concern successful a $5.1 cardinal deal, aiming to make a much broad supplier serving commercial- and light-vehicle markets.

The companies connected Thursday said Eaton shareholders would ain astatine slightest 50.1% of the combined institution astatine closing, with Dana shareholders acceptable to ain astir 49.9%. Under the deal's terms, Eaton would person a currency organisation of astir $1.1 billion, taxable to adjustments.

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The operation would integrate Dana's powertrain, thermal and sealing technologies with Eaton Mobility's commercial-vehicle transmissions, motor and emissions products, and precocious electrification capabilities, forming a institution with astir $11 cardinal successful sales.

Dana expects the transaction to present $250 cardinal successful yearly run-rate savings wrong 2 years of closing, driven by reduced structural costs, purchasing scale, manufacturing optimization and engineering efficiencies, it said.

Shares of Dana fell 7.1%, to $32.94, successful premarket trading. Shares of Eaton were trading 3.1% higher, astatine $387.

The deal, expected to adjacent successful the archetypal 4th of 2027, would beryllium structured arsenic a Reverse Morris Trust, Dana said.

Under this structure, Eaton would archetypal abstracted its Mobility Group to Eaton shareholders. Immediately thereafter, Dana would merge with a subsidiary of the Mobility Group, with Dana surviving arsenic a wholly owned subsidiary of the Mobility Group.

Dana Chairman R. Bruce McDonald is slated to service arsenic enforcement president of the combined company, liable for integration and synergy realizations. Incoming Dana Chief Executive Byron Foster is acceptable to service arsenic its apical executive.

"This transaction marks an important milestone successful our translation and positions Dana arsenic a leading, scaled supplier of powertrain solutions," Foster said.

Eaton said the transaction would people the adjacent measurement successful its ongoing portfolio transformation, and that the separation would beryllium instantly additive to its integrated maturation complaint and operating margins.

"Looking ahead, our portfolio volition beryllium intimately aligned with the almighty megatrends driving generational maturation successful our electrical and aerospace businesses," Chief Executive Paulo Ruiz said.