Genuine Parts Company (GPC) announced Tuesday its intention to separate the company into two independent, publicly traded companies.
One company would be the Automotive Parts Group (Global Automotive) and the other would be the Industrial Parts Group (Global Industrial).
“Genuine Parts Company has a proud history of evolving with our markets for nearly a century,” said Will Stengel, chair-elect and CEO, in a press release. “Over the past decade, we established leading global footprints in attractive geographies, simplified our business mix and accelerated strategic investments to advance and differentiate our business. Creating two focused, independent companies sharpens customer and market alignment, increases clarity and speed, simplifies operations and enables disciplined, business-specific investments to unlock long-term value.”
The transaction is slated for completion in the first quarter of 2027 and is expected to qualify as a tax-free transaction for U.S. federal tax purposes to Genuine Parts Company shareholders.
Separating the company allows for the creation of dedicated platforms that improve operating clarity and execution speed, the release says. It also would establish separate management teams with tailored expertise, strategies, and decision-making authority.
The release adds that it would provide enhanced financial flexibility to enable strategic investments that accelerate profitability growth, improve productivity, and extend market leadership positions. It also would allow each business to design capital structures and capital allocation strategies aligned with specific business objectives.
GPC also says that the decision will enable each business to attract a long-term investor base through a clear, compelling, and differentiated investment profile.
The company describes itself as a leading global service provider of automotive and industrial replacement parts and value-added solutions. It says its Automotive Parts Group operates in North America, Europe, and Australia and its Industrial Parts Group serves customers across North America and Australia. This includes 10,800 locations spanning 17 countries supported by 65,000 teammates.
Global Automotive includes NAPA brands and others and is focused on the automotive aftermarket platform. This will include growth and market share opportunities for the commercial “do-it-for-me’ customer, the release says. It generated more than $15 million in sales and $1.2 billion of EBITDA in 2025.
It includes a network of more than 10,000 global locations and 20,000 NAPA Auto Care repair centers in North America.
“Global Automotive has been executing significant technology and supply chain transformation programs, which are expected to deliver accelerating growth and margin expansion, further optimize working capital and increase return on invested capital,” the release says. “Global Automotive is targeting to maintain investment-grade credit metrics, with a tailored capital structure designed to support future capital investment priorities.”
Global Industrial operates under the Motion brand and is a diversified industrial distributor and value-added solutions provider, the release says. It generated about $9 billion in sales and more than $1.1 billion of EBITDA in 2025.
The release says Motion is the leading provider of “mission critical” industrial maintenance and repair and value-added solutions including fluid power, automation, conveyance, and repair services.
Motion has relationships in 14 diversified end markets across manufacturing sectors, it says. It has 10 million SKUs to support its more than 180,000 global customers.
“Motion is well-positioned to extend its industry leadership position in a fragmented $150 billion global market through its differentiated customer value proposition driven by solution-based selling, technical and product expertise, product breadth, delivery coverage and service excellence,” the release says. “Motion will continue to benefit from long-term secular tailwinds including re-shoring and near-shoring opportunities, automation and robotics, artificial intelligence infrastructure build out and the increasing scarcity of manufacturing technical expertise.”
The company names, executive teams, and board of directors for Global Automotive and Global Industrial will be announced at a later date, the release says.
The transaction will need final approval from the GPC Board and filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission. It does not need shareholder approval.
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