Overview
- A deal announced Thursday between Dana and Eaton will combine Dana with Eaton’s Mobility Group using a Reverse Morris Trust structure, with Eaton shareholders to own at least 50.1% and Dana shareholders about 49.9%.
- Under the terms Eaton will receive a cash distribution of roughly $1.1 billion and the combined company is projected to produce about $11 billion in sales and $1.7 billion in pro forma adjusted EBITDA for 2026 estimates.
- Dana projects $250 million in annual run-rate savings within two years of closing through cost cuts, bigger purchasing scale, factory optimization and engineering efficiencies.
- Leadership for the combined business is set in advance with R. Bruce McDonald as executive chairman overseeing integration and Byron Foster as chief executive, signaling clear accountability for delivering synergies.
- The transaction now moves into the spin, regulatory and shareholder-approval process with a targeted close in the first quarter of 2027, and near-term market reaction saw Dana shares fall and Eaton shares rise as investors weighed execution and regulatory risks.