- Explaining its rationale for splitting the auto and industrial parts businesses, Genuine Parts said the move will improve operational clarity and execution speed for both companies.
- Genuine Parts also noted that each company will be better positioned to address customer needs, thanks to separate management with expertise in their respective sectors.
- It added that this separation will give the two companies added financial flexibility to tailor their strategic investments and design capital structures that suit their respective businesses.
Genuine Parts (GPC) on Tuesday announced plans to separate its auto and industrial parts businesses into two distinct public companies.
The company expects the split to be complete by the first quarter (Q1) of 2027 and attributes it to a comprehensive strategic and operational review of market opportunities.
“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,” said Genuine Parts CEO Will Stengel.
Genuine Parts shares were down by over 7% in Tuesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory, with message volumes at ‘high’ levels.
Genuine Parts also reported its fourth-quarter (Q4) results, with earnings per share (EPS) of $1.55 on revenue of $6 billion. According to Stocktwits data, Wall Street expected an EPS of $1.81 on revenue of $6.07 billion.
Why Did Genuine Parts Announce The Split?
Explaining its rationale for splitting the auto and industrial parts businesses, Genuine Parts said the move will improve operational clarity and execution speed for both companies.
Genuine Parts also noted that each company will be better positioned to address customer needs, thanks to separate management with expertise in their respective sectors.
It added that this separation will give the two companies added financial flexibility to tailor their strategic investments and design capital structures that suit their respective businesses.
Global Automotive To Offer Aftermarket Auto Solutions
Global Automotive, the new name of Genuine Parts’ auto business, will offer aftermarket auto solutions. It will operate the National Automotive Parts Association (NAPA) brand, Repco, Hennig, and Voigt, among others.
Global Automotive generated more than $15 billion in revenue in 2025, with a network of more than 10,000 global locations, and over 20,000 NAPA Auto Care repair centers in North America, the company said.
Global Industrial’s Market Presence
Global Industrial, operating under the Motion brand, generated about $9 billion in sales in 2025, according to the company.
It has presence in over 14 diversified end markets across critical manufacturing sectors, with over 10 million SKUs to support its over 180,000 global customers.
GPC stock is up 20% year-to-date and 18% over the past 12 months.
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