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 Incorporated announced a definitive agreement to merge with Eaton's Mobility business in a $5.1 billion Reverse Morris Trust transaction, creating a significantly larger global powertrain company with enhanced financial targets and substantial synergies.
Key Events · M&A and Partnerships · DAN
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Major Merger Agreement
Dana will combine with Eaton's Mobility business in a $5.1 billion Reverse Morris Trust transaction, creating a comprehensive powertrain leader.
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New Industry Leader
The combined entity is projected to have approximately $11 billion in sales and $1.7 billion in adjusted EBITDA by 2026, with an enterprise value exceeding $10 billion.
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Enhanced Financial Outlook
Dana's 2030 targets are significantly raised to $14-$15 billion in sales, ~18% adjusted EBITDA margin, and 8-9% adjusted free cash flow margin.
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Significant Synergies
The transaction is expected to generate $250 million in annual run-rate cost synergies within 24 months post-closing.
Analysis · DAN · Manufacturing
This filing announces a definitive agreement for Dana to combine with Eaton's Mobility business in a $5.1 billion Reverse Morris Trust transaction. This highly transformative merger will create a global powertrain leader with over $10 billion in enterprise value and significantly higher revenue and EBITDA targets for Dana by 2030. The deal is expected to generate $250 million in annual synergies and maintain a strong balance sheet, positioning Dana for expanded scale and profitability.
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 10 out of 10.