DAN DANA Inc
Price Chart
Executive Summary
Dana announced a definitive agreement to combine with Eaton's Mobility Group in a Reverse Morris Trust transaction, creating a combined company valued at over $10 billion in enterprise value. The deal is expected to nearly double Dana's scale, add $250 million in cost synergies, and significantly improve margins and free cash flow, with the combined company targeting $14-$15 billion in sales and ~18% adjusted EBITDA margin by 2030.
Key Financial Metrics
Actionable Insight
This transformative acquisition significantly improves Dana's scale, margin profile, and aftermarket diversification. Traders should monitor regulatory developments and the Dana shareholder vote timeline. The buyback suspension may pressure near-term sentiment, but the strategic merits and synergy targets should support the stock. Expect heightened volatility as the market prices in integration risk and potential counter-bids.
Key Facts
- Eaton Mobility valued at approximately $5.1 billion enterprise value; combined company over $10 billion
- Eaton shareholders to own at least 50.1%, Dana shareholders ~49.9% of the combined company
- Eaton to receive $1.1 billion cash distribution at close
- Pro forma 2026E revenue ~$11 billion, adjusted EBITDA ~$1.7 billion (~15% margin) fully synergized
- $250 million annual run-rate cost synergies targeted within 24 months of closing
- Dana 2030 targets raised to $14-$15 billion sales, ~18% adjusted EBITDA margin, 8%-9% adjusted FCF margin
- Pro forma net leverage ~1.2x; Dana to maintain current credit rating
- Expected close Q1 2027 subject to Dana shareholder and regulatory approvals
- Dana temporarily suspending share buyback to preserve tax-free structure
- Goldman Sachs serving as exclusive financial advisor; Kirkland & Ellis as legal counsel
Financial Impact
Combined company enterprise value over $10 billion, pro forma revenue ~$11 billion, adjusted EBITDA ~$1.7 billion, with $250 million synergies
Risk Factors
- Integration risk – realizing $250M synergies within 24 months is ambitious
- Regulatory approvals may delay or attach conditions
- Dana shareholder approval required; any dissent could scuttle the deal
- Pro forma net leverage of 1.2x includes new debt for the $1.1B cash distribution; debt markets could shift
- Buyback suspension removes a potential support for the stock during the pendency period
Market Snapshot
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 425 Filing (Primary) | 0001193125-26-266659 |
| Document: 0001193125-26-266659-index-headers.html | 0001193125-26-266659 |
| Document: 0001193125-26-266659-index.html | 0001193125-26-266659 |
| Document: 0001193125-26-266659.txt | 0001193125-26-266659 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 11, 2026
1d ago
|
425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
|
Jun 11, 2026
1d ago
|
425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
|
Jun 11, 2026
1d ago
|
425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
|
Jun 11, 2026
1d ago
|
425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
|
Jun 11, 2026
1d ago
|
8-K
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
|
Jun 11, 2026
2d ago
|
425
| $38.00 awaiting T+5 | awaiting T+5 | — | $30.81 (−18.92%) |
|
Jun 11, 2026
2d ago
|
8-K
| $38.00 awaiting T+5 | awaiting T+5 | — | $30.81 (−18.92%) |
|
May 15, 2026
28d ago
|
8-K
| $33.29 $35.19 | ▲ +5.71% | ▲ +4.09% | $30.81 (−7.45%) |
|
Mar 13, 2026
13w ago
|
DEFA14A
| $31.27 $31.41 | ▲ +0.44% | ▲ +2.56% | $30.81 (−1.47%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access