Eaton to Sell Mobility Group to Dana in $5.1 Billion Deal
The transaction completes Eaton's years-long portfolio overhaul, sharpening its focus on electrical and aerospace markets tied to AI data centers and defense spending.
Eaton (ETN) agreed to sell its Mobility Group to Dana (DAN) in a transaction valued at approximately $5.1 billion, the companies said, advancing the power-management company's strategy to concentrate on higher-growth electrical and aerospace businesses. The deal, which is expected to close in the first quarter of 2027, will see the Mobility Group—comprising Eaton's Vehicle and eMobility segments—fold into Dana's existing powertrain and driveline operations.
The combination will integrate Dana's global powertrain, thermal, and sealing technologies with Eaton Mobility's commercial vehicle transmissions, engine and emissions products, and electrification capabilities. The merged entity will target $14 billion to $15 billion in sales by 2030, with adjusted EBITDA margins of approximately 18%, up from Dana's prior standalone targets of roughly $10 billion in sales and 14% to 15% margins.
Eaton chief executive Paulo Ruiz said the agreement "delivers significant value to Eaton and its shareholders, further aligns our existing portfolio with powerful megatrends and supports Eaton's 2030 growth strategy to lead, invest, and execute for growth". The divestiture follows Eaton's earlier separations of its Lighting business in 2020 and Hydraulics in 2021, part of a multi-year transformation that has shifted the company's center of gravity toward electrification, digitalization, and AI-driven data center buildout.
Eaton's Mobility Group generated an estimated $3.3 billion in 2026 sales, with roughly 65% derived from commercial-vehicle aftermarket applications and the remainder from light-vehicle markets. The business operates 28 manufacturing sites across North America, South America, Europe, and Asia Pacific, employing approximately 13,000 people. As a standalone entity within Dana, the Mobility operations will have greater flexibility to allocate capital and pursue growth in heavy-, medium-, and light-duty truck markets as well as off-highway vehicles.
The transaction is expected to generate run-rate cost synergies of $250 million within 24 months of closing. Dana's incoming chief executive, Byron Foster, said the combination "further accelerates the execution and expands the scope of our Dana 2030 strategy by increasing scale, deepening our aftermarket capabilities, and advancing both our traditional and electrification technologies". The deal remains subject to Dana shareholder approval, regulatory clearances, and other customary closing conditions.
For Eaton, the Mobility sale caps a period of aggressive portfolio reshaping. The company closed $11 billion in acquisitions during the first quarter of 2026 alone, including Boyd Thermal, a thermal-management specialist serving data centers and aerospace, and Ultra PCS, a U.K.-based producer of aerospace electronic controls. With Mobility separated, Eaton's remaining portfolio will be anchored in Electrical Americas, Electrical Global, and Aerospace—segments that posted record first-quarter sales and carry a combined backlog up more than 40% organically.