ETN: To Merge Mobility with DAN Via RMT; $5.1B/8.3x EBITDA, In-Line with Unconfirmed Media Reports

研报英文原文证据摘录

ETN: To Merge Mobility with DAN Via RMT; $5.1B/8.3x EBITDA, In-Line with Unconfirmed Media Reports

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Deane Dray, CFA (Co-Head of Global Industrials

Research)

Kenny Sim, CFA (AVP)

Jeffrey Reive, CFA (Analyst)

Thomas Wisnewski, CFA (Senior Associate)

June 11, 2026

Eaton Corporation plc

To Merge Mobility with DAN Via RMT; $5.1B/8.3x EBITDA, In-Line with Unconfirmed

Media Reports

NYSE: ETN | USD 375.46 | Outperform | Price Target USD 484.00

Sentiment: Neutral

Our view: On June-11, Outperform-rated Eaton announced what we view as an attractive/creative merger of its Mobility segment

(Vehicle and eMobility combined) via a RMT with Dana (ticker: DAN, covered by RBC Auto analyst Tom Narayan; see his note here).

The valuation of $5.1 billion or 8.3x 2026 EBITDA is in-line with an unconfirmed Jan-21 Bloomberg article that suggested the deal

was being contemplated at ~$5 billion at 7x-8x EBITDA (see our note here). Our SOP-implied valuation was ~$4.5 billion. The tax-

free RMT divestiture is also a positive, in our view. Eaton will receive $1.1 billion net cash proceeds and Eaton shareholders will

get 50.1% ownership of the combined entity. We view Dana as a natural owner of this business. We expect the net proceeds to be

immediately re-deployed to pay down a portion of the +$9 billion debt Eaton raised to acquire Boyd Thermal in March-2026. With

the deal, proforma Dana will add three of Eaton’s executives and directors to its Board. Overall, while it was not a clean, complete

divestiture for investors some of them may have hoped for, we like the timely execution against its ongoing portfolio optimization

actions under CEO Paulo Ruiz that should immediately be accretive to its organic growth and operating margin profiles closer to