Dana to Combine with Eaton's Mobility Business in $5.1B Reverse Morris Trust
DAN has more than doubled off its 52-week low of $15.305.
Summary
Dana announced a definitive agreement to combine with Eaton's Mobility business in a $5.1 billion Reverse Morris Trust transaction, creating a larger global powertrain leader with significantly increased sales and profitability targets.
Key Events · M&A and Partnerships · DAN
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Major Combination Agreement
Dana will combine with Eaton's Mobility business in a $5.1 billion Reverse Morris Trust transaction, creating a global powertrain leader.
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Significant Scale Increase
The combined company is projected to have approximately $11 billion in sales and $1.7 billion in adjusted EBITDA on a pro forma 2026 estimated basis.
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Enhanced 2030 Targets
Dana's 2030 sales targets are raised to $14-$15 billion, adjusted EBITDA margin to ~18%, and adjusted free cash flow margin to 8%-9%.
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Strategic Synergies
The transaction is expected to generate $250 million in annual run-rate cost synergies within 24 months.
Analysis · DAN · Manufacturing
This is a transformational merger for Dana, significantly expanding its scale and market position in powertrain solutions. The $5.1 billion Reverse Morris Trust transaction with Eaton's Mobility business is valued at over 150% of Dana's current market capitalization, creating a combined entity with projected $11 billion in sales and substantially higher long-term financial targets. While the share buyback program is temporarily suspended, the deal is expected to be tax-free for shareholders and maintain a strong balance sheet, positioning Dana for enhanced profitability and growth.
At the time of this filing, DAN was trading at $31.07 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.4B. The 52-week trading range was $15.31 to $39.56. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.