DAN DANA Inc
Price Chart
Executive Summary
Dana Incorporated announced a definitive agreement to combine with Eaton's Mobility business in a Reverse Morris Trust transaction valued at approximately $5.1 billion, creating a combined company with ~$11 billion in pro forma 2026 estimated sales and ~$1.7 billion adjusted EBITDA. Dana shareholders will own ~49.9% of the combined entity, and the deal is expected to close in Q1 2027, subject to approvals.
Actionable Insight
This transformative acquisition significantly scales Dana's commercial vehicle and aftermarket presence with a highly complementary portfolio and credible synergy targets. Traders should watch for regulatory approval developments and further detail on the financing structure. The suspension of the buyback program near-term is a minor offset but the long-term margin and FCF expansion story is compelling.
Key Facts
- Transaction values Eaton Mobility at ~$5.1 billion enterprise value
- Combined company expected pro forma 2026E sales of ~$11 billion and ~$1.7 billion adjusted EBITDA (~15% margin) on a fully synergized basis
- Expected $250 million in annual run-rate cost synergies within 24 months of closing
- Eaton shareholders to own at least 50.1%, Dana shareholders ~49.9% of combined company at close
- Eaton to receive ~$1.1 billion cash distribution at closing, funded by new debt
- Transaction expected to close in Q1 2027, subject to Dana shareholder and regulatory approvals
- Dana's 2030 targets raised to $14-$15 billion in sales, ~18% adjusted EBITDA margin, 8%-9% adjusted free cash flow margin
- Pro forma net leverage expected to be ~1.2x; Dana expected to maintain current credit rating
- R. Bruce McDonald to serve as Executive Chairman, Byron Foster as CEO (both effective July 1, 2026); Timothy Kraus to remain CFO
Financial Impact
Approximately $5.1 billion enterprise value for Eaton Mobility; combined company implied enterprise value over $10 billion; $1.1 billion cash distribution to Eaton; $250 million annual run-rate synergy target
Risk Factors
- Failure to obtain required stockholder or regulatory approvals could delay or scuttle the transaction
- Integration risks, including inability to realize the targeted $250 million in cost synergies within 24 months
- Execution risk related to separation of Eaton Mobility from Eaton and potential disruption to ongoing operations
- Higher-than-expected leverage or credit rating downgrade if the post-closing debt load exceeds projections
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-266654 |
| Document: d114836dex991.htm | 0001193125-26-266654 |
| Document: d114836dex992.htm | 0001193125-26-266654 |
| Document: 0001193125-26-266654-index-headers.html | 0001193125-26-266654 |
| Document: 0001193125-26-266654-index.html | 0001193125-26-266654 |
| Document: 0001193125-26-266654.txt | 0001193125-26-266654 |
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Jun 11, 2026
1d ago
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425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
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Jun 11, 2026
1d ago
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425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
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Jun 11, 2026
1d ago
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425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
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Jun 11, 2026
1d ago
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425
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
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Jun 11, 2026
1d ago
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8-K
| $30.10 awaiting T+5 | awaiting T+5 | — | $30.81 (+2.36%) |
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Jun 11, 2026
2d ago
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425
| $38.00 awaiting T+5 | awaiting T+5 | — | $30.81 (−18.92%) |
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Jun 11, 2026
2d ago
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8-K
| $38.00 awaiting T+5 | awaiting T+5 | — | $30.81 (−18.92%) |
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May 15, 2026
28d ago
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8-K
| $33.29 $35.19 | ▲ +5.71% | ▲ +4.09% | $30.81 (−7.45%) |
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Mar 13, 2026
13w ago
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DEFA14A
| $31.27 $31.41 | ▲ +0.44% | ▲ +2.56% | $30.81 (−1.47%) |
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