ETN · 8-K · 20260611PR001733

Acquisition / Partnership / Divestiture

Eaton Corp plc · 2026-06-11 · Importance 71 · Surprise 60 · In source text

Eaton agreed to separate and combine its Mobility Group with Dana Incorporated in a Reverse Morris Trust transaction, creating a combined company valued at more than $10 billion. The transaction values Eaton’s Mobility Group at approximately $5.1 billion, with Eaton shareholders retaining at least 50.1% of the combined company. Eaton expects to receive an approximately $1.1 billion cash distribution and will focus its remaining portfolio on Electrical and Aerospace businesses aligned with electrification, digitalization, AI-driven data center buildout, infrastructure modernization, aerospace aftermarket, and defense spending. The transaction is expected to close in the first quarter of 2027, subject to shareholder approval, regulatory clearances, and customary conditions.

Key facts

• The Reverse Morris Trust transaction values the combined company at over $10 billion in enterprise value. source
• The transaction values Eaton’s Mobility Group at approximately $5.1 billion. source
• The combined company is expected to deliver $250 million of run-rate cost synergies. source
• Eaton announced it entered into a definitive agreement with Dana Incorporated to separate and combine its Mobility Group with Dana in a Reverse Morris Trust transaction creating a combined company. source
• Eaton will first separate its Mobility Group to Eaton shareholders through either an exchange offer (split-off) or a pro rata distribution (spin-off), at Eaton’s election. source
• Byron Foster and Timothy Kraus will lead the combined company as CEO and CFO, respectively. source
• Erin Rowse, Eaton’s current Senior Vice President Human Resources, Industrial, will serve as the combined company’s Chief Human Resources Officer upon close. source
• R. Bruce McDonald will serve as Executive Chairman of the combined company. source

Impact estimates