Dana Incorporated said it has agreed to combine with Eaton’s mobility business in a deal valuing the unit at about $5.1 billion, with the combined company expected to generate about $11 billion in sales and $1.7 billion in adjusted EBITDA on a fully synergized, pro forma 2026 basis.
The transaction is expected to deliver $250 million in annual run-rate synergies within 24 months of closing. Dana said the deal will lift its 2030 targets to $14 billion to $15 billion in sales, about 18% adjusted EBITDA margin, and an 8% to 9% adjusted free cash flow margin. That compares with prior Dana targets of about $10 billion in sales, 14% to 15% adjusted EBITDA margin, and a 6% adjusted free cash flow margin.
The companies said Eaton shareholders will own at least 50.1% of the combined company, while Dana shareholders will own about 49.9% at closing. Eaton will receive a cash distribution of about $1.1 billion, subject to adjustments for cash and debt.
Dana said the combined company is expected to keep net leverage at about 1.2 times on a pro forma 2026 basis after funding the cash distribution. The company also said the deal is priced at about 8.3 times estimated 2026 pro forma adjusted EBITDA before synergies, or about 5.9 times including synergies.
Dana said the transaction expands its portfolio with Eaton mobility’s commercial vehicle transmissions, engine and emissions products, and electrification capabilities, alongside Dana’s powertrain, thermal, and sealing technologies. The company said the combination will broaden its customer base across commercial and light vehicles and their aftermarket channels.
The combined company will operate under the Dana name and remain listed on the New York Stock Exchange. Dana said it expects the transaction to close in the first quarter of 2027. Following these announcements, the company's shares moved -15.0%, and are now trading at a price of $30.15. Check out the company's full 8-K submission here.
