Dana Incorporated Announces Agreement to Combine with Eaton's Mobility Business, Strengthens Dana's Position as a Leading Global Powertrain Systems Provider

Key Points:

• Dana Incorporated and Eaton Corporation plc have agreed to combine Eaton's Mobility business with Dana in a Reverse Morris Trust transaction valued at approximately $5.1 billion, creating a global powertrain leader with about $11 billion in pro forma 2026 sales.
• The combined company will be owned approximately 50.1% by Eaton shareholders and 49.9% by Dana shareholders, aiming to achieve $250 million in annual run-rate synergies within 24 months post-closing.
• Dana’s 2030 strategic targets have been raised to $14–$15 billion in sales, around 18% adjusted EBITDA margin, and 8%–9% adjusted free cash flow margin, reflecting enhanced scale, broader capabilities, and diversified customer base.
• Leadership will include Dana’s R. Bruce McDonald as Executive Chairman and Byron Foster as CEO, with the combined company retaining the Dana name and NYSE listing, expected to close in Q1 2027 pending approvals.
• The transaction is expected to be tax-free to shareholders and will strengthen financial profiles with improved margins, a balanced portfolio spanning mechanical and electrified powertrain solutions, and a strong balance sheet with approximately 1.2x net leverage.