Eaton Corporation plc (NYSE:ETN) is included among the 13 Best Electrical Infrastructure Stocks to Buy in 2026.
Eaton Corporation plc (NYSE:ETN) is a power management company doing business in more than 160 countries. Its energy-efficient products and services help with effectively managing electrical, hydraulic, and mechanical power more reliably, efficiently, safely, and sustainably.
Eaton Corporation plc (NYSE:ETN) announced on June 11 that it has entered into an agreement with Dana, under which its mobility business will separate and combine with the latter. The deal values Eaton’s Mobility Group at approximately $5.1 billion, and the combined company will be valued at over $10 billion.
Under the terms of the deal, Eaton will receive a cash distribution of around $1.1 billion, subject to adjustments for cash and indebtedness. Moreover, the move will allow the power management company to focus its portfolio on its electrical and aerospace businesses in data centers, aerospace aftermarket, and defense.
The transaction is expected to close in the first quarter of 2027, subject to receipt of approval from Dana shareholders, required regulatory clearances, and customary closing conditions. The new entity, which will operate as Dana Inc., is projected to achieve $250 million of run-rate cost synergies within 24 months of closing.
Paulo Ruiz, CEO of Eaton Corporation plc (NYSE:ETN), stated:
“We are pleased to have reached this agreement, which delivers significant value to Eaton and its shareholders, and represents a major milestone in Eaton’s 2030 growth strategy to lead, invest, and execute for growth. Eaton shareholders will benefit from the meaningful upside created by the combined company, and the transaction will provide substantial cash value for Eaton to deploy to our highest-growth and highest-margin opportunities. Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our Electrical and Aerospace businesses, and we look forward to continuing our momentum to drive meaningful value for our customers and shareholders.”
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