Genuine Parts Company announced its intention to separate the company into two independent, publicly traded companies. One will comprise its Automotive Parts Group (Global Automotive) and the other its Industrial Parts Group (Global Industrial). The transaction, targeted for completion in the first quarter of 2027, is expected to qualify as a tax-free transaction for U.S. federal tax purposes to Genuine Parts Company shareholders.
“Genuine Parts Company has a proud history of evolving with our markets for nearly a century,” said Will Stengel, chair-elect and chief executive officer. “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.”
Separation to Create Two Independent, Publicly Traded Companies
GPC said the business separation follows a strategic and operational review of market opportunities, in-flight initiatives and business structure considerations across Global Automotive and Global Industrial.
Pursuing the separation is expected to create two scaled market leaders, better able to execute their respective strategies by:
- Creating dedicated platforms that improve operating clarity and execution speed at each company to deliver greater customer value and long-term shareholder returns;
- Establishing separate management teams with tailored expertise, strategies and decision-making authority to better address customer needs;
- Providing enhanced financial flexibility to enable strategic investments that accelerate profitable growth, improve productivity and extend market leadership positions;
- Allowing each business to design capital structures and capital allocation strategies aligned with specific business objectives, while targeting investment-grade credit metrics at each company; and
- Enabling each business to attract a long-term investor base through a clear, compelling and differentiated investment profile.
Global Automotive Operations and Financials
Global Automotive is the largest global network of automotive parts and auto care repair centers, operating in North America, Europe, the U.K. and Australasia. Going to market under the NAPA brand, among others, Global Automotive will be a more focused automotive aftermarket platform able to capitalize on local customer needs and market trends, including growth and market share opportunities with the commercial do-it-for-me customer. Through its 100-year legacy, NAPA said it has earned its leadership position with customer loyalty built on product quality, deep relationships and a culture grounded in expertise, service, performance and innovation. Global Automotive’s international businesses in Europe and Australasia hold leading market positions and leverage the NAPA and Repco brands to expand share in their respective geographies.
Global Automotive generated more than $15 billion in sales and $1.2 billion of EBITDA in 2025. It has a network of more than 10,000 global locations with opportunities in a fragmented $200 billion addressable market driven by non-discretionary demand. The business will continue to benefit from its global footprint, including independent owner coverage, a dedicated network of more than 20,000 NAPA Auto Care repair centers in North America, growing commercial do-it-for-me end markets and diversified customer segments.
Global Automotive has been executing technology and supply chain transformation programs that are expected to deliver accelerating growth and margin expansion, further optimize working capital and increase return on invested capital. GPC said the company is targeting investment-grade credit metrics, with a capital structure designed to support future capital investment priorities. Global Automotive will prioritize high-return organic investments across sales and stores, technology, supply chain and accretive bolt-on acquisitions, and expects to complement its strategic investments with a balanced capital return program.
Executive Team and Transaction Conditions
There are no changes to the GPC executive team. The company names, executive teams and boards of directors for Global Automotive and Global Industrial will be announced at a later date.
The transaction is expected to be completed in the first quarter of 2027, subject to satisfaction of customary conditions, including final approval from the GPC board and filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission. The separation does not require shareholder approval.
