Eaton Corporation (NYSE:ETN) said it intends to separate its Vehicle and eMobility operations into a standalone, publicly listed company, with the transaction expected to be completed by the end of the first quarter of 2027.
The Dublin-headquartered power management group said the move will sharpen its focus on its Electrical and Aerospace segments, which it views as offering stronger growth prospects and higher margins. The planned separation is subject to customary regulatory clearances, final approval from Eaton’s board and the effectiveness of a Form 10 registration filing with the U.S. Securities and Exchange Commission.
Eaton’s Mobility Group supplies engineered products and systems to commercial vehicle, automotive and off-highway original equipment manufacturers. The business holds leading positions in commercial truck transmissions and clutches across the Americas, and in high-voltage electric vehicle fuses and valve actuation technologies worldwide.
Chief executive Paulo Ruiz said the spin-off aligns with Eaton’s 2030 strategic plan and is designed to give both entities greater operational focus and more targeted capital allocation frameworks.
Eaton said it expects the separation to be immediately accretive to organic growth and operating margins once completed. The transaction is intended to be tax-free for Eaton shareholders under U.S. federal income tax rules.
The announcement follows earlier portfolio simplification moves, including the divestment of Eaton’s Lighting business in 2020 and its Hydraulics unit in 2021. Eaton generated nearly $25 billion in revenue in 2024.
Morgan Stanley & Co. LLC is acting as financial adviser on the transaction, with legal advice provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hogan Lovells.