Eaton Announces Plan to Spin off its Mobility Group
Eaton intends to pursue a separation of its Vehicle and eMobility segments (together, “Mobility Group” or “Mobility”) into an independent, publicly traded company.
Paulo Ruiz, Eaton chief executive officer, said, “The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest, and execute for growth. Our team will have a sharpened focus on our core Electrical and Aerospace businesses, which are driven by powerful megatrends including in electrification, digitalization and AI, reindustrialization, infrastructure spending and growth in the aerospace after-market and defense demand. We are confident that Eaton is exceptionally well positioned to capitalize on opportunities to accelerate growth and margin expansion, and to create long term value for our shareholders.”
Ruiz continued, “We are incredibly proud of what our Mobility team has built and believe that now is the right time to separate that business. As an independent company, Mobility will be able to build on its strong foundation as a leading supplier across the globe and have the strategic focus and agility to allocate capital and resources to best serve its customers, pursue independent growth opportunities, and drive innovation.”
Mobility provides mission-critical and safety-critical engineered solutions responsible for creating, distributing and optimizing power for all types of vehicles and propulsion systems, with a leading position in commercial truck transmissions and clutches in the Americas, as well as high-voltage EV fuses and valve actuation technologies around the world. The business operates as a true innovation partner for OEM customers’ electrification needs, offering deep domain knowledge, proprietary technology and system-level integration.
A separation will allow Mobility more flexibility to pursue near- and long-term growth opportunities, including in markets where it is well positioned with leading technologies serving heavy-, medium- and light-duty trucks, passenger vehicles and off-highway vehicles.
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