Eaton Plans to Spin Off Automotive Business, Valued at Up to $5 Billion

Eaton Corporation, a power management company, is considering spinning off its automotive business, which could be valued as high as $5 billion, according to people familiar with the matter. The unit primarily manufactures transmission components, clutches, and engine valves, and reported third-quarter 2023 sales of $639 million, an 8% decline year-over-year. The move is part of Eaton’s ongoing evaluation of strategic options aimed at optimizing its business portfolio and enhancing shareholder value.