When Eaton announced in January its intent to spin-off its trucking and larger mobility operations, streamlining its focus behind its core electrical and aerospace segments, consensus was it wouldn’t take long for the global manufacturer to find a potential suitor for its available business.
It didn’t.
Earlier this month Eaton announced its intent to merge its Mobility Group with Dana Incorporated, creating a $10 billion global parts behemoth with a comprehensive product portfolio to serve the light-, medium- and heavy-duty sectors as well as the aftermarket.
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Eaton CEO Paulo Ruiz added, “We are pleased to have reached this agreement, which 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. Together, Eaton Mobility and Dana will create a leading and global engineering solutions partner, well positioned to serve commercial vehicle and light vehicle markets worldwide.”
In response to the news, Trucks, Parts, Service reached out to Eaton for more detail around the transaction. Eaton’s responses are below.
How did Eaton find Dana as a purchaser of its Mobility Group business unit?
“Following the January announcement, Eaton received heightened interest in our Mobility Group given its strong market position, credibility and reputation.”
Eaton and Dana previously had a marketing partnership (Roadranger) in the commercial trucking space. Did that prior collaboration influence the decision to go with Dana now? Was the prior commonality a benefit when discussing the transaction?
“Eaton and Dana have both been in the mobility markets for more than 115 years. Over the last several decades, the companies have had strategic partnerships, including the Roadranger commercial agreement. The combination of the Mobility Group with Dana creates a strong, competitive company well-positioned to serve customers through an enhanced product offering, complementary technologies, a diversified business mix, customer base and an expanded aftermarket business.
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“We believe the combined business will provide many benefits to employees, customers and suppliers and will deliver meaningful value to both Eaton and Dana shareholders. Together, the new company will be better positioned to deliver innovative, high-quality solutions to support customers and more effectively and build a more balanced, resilient business for the future.”
How long were negotiations between both sides before last week’s the announcement was made?
How will Eaton support the Mobility Group business until the transaction is complete?
“Until the transaction closes, Mobility Group and Dana will continue to operate as they are structured today — with our Mobility Group as part of Eaton and Dana as a separate, independent company. Eaton will continue to fully support the Mobility Group and its strategic commitment to serve the automotive and commercial markets through the closure of the transaction.”
