Eaton Spinning Off Mobility Group to Narrow its Focus on Digitalization, Industrial Electrification
Global energy management technology firm Eaton will spin off its commercial vehicle equipment and e-mobility businesses as part of a broader strategy to focus on the electricity and aerospace sectors.
Eaton will separate the Mobility Group into an independent and separately traded company. The company sees higher margin and growth in trends around electrification, digitalization, artificial intelligence, re-industrialization, aerospace and defense.
“The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest, and execute for growth,” Eaton CEO Paulo Ruiz said in a statement. “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.”
The Mobility Group provides power solutions for multiple types of vehicles and propulsion systems, including a prominent position in commercial truck transmissions, clutches, high-voltage EV fuses and valve actuation technologies.
Eaton hopes to complete the spin-off of the Mobility Group by early 2027, pending board of directors, legal and regulatory approvals. The separation is seen as offering more focused investment profiles.
Eaton divested its lighting business in 2020 and hydraulics one year later.