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Genuine Parts Gears Up for Major Corporate Split
17 Feb
Summary
- Genuine Parts plans to separate auto and industrial businesses.
- The separation aims to enhance growth and flexibility for each unit.
- The company operates approximately 10,800 locations across 17 countries.
Genuine Parts, a global leader in automotive and industrial parts, is reportedly planning to divide its operations into two distinct public companies. This strategic separation is intended to unlock greater growth potential and flexibility for both the automotive and industrial divisions.
The company, which boasts a presence in 17 countries through roughly 10,800 locations, is undertaking this review with financial advisers. The automotive business, known for brands like NAPA, generated over $15 billion in sales in 2025. The industrial segment, operating under the Motion brand, brought in approximately $9 billion in revenue.
This corporate restructuring follows a trend of investors favoring streamlined businesses, as faster-growing units can sometimes be hindered by divisions with divergent strategic plans. Genuine Parts has experienced a year-to-date share increase of about 20%, driven by demand for replacement parts for aging vehicles and machinery, as well as potential infrastructure reinvestment.
Activist investor Elliott Investment Management previously advocated for recognizing the full value of Genuine Parts' distinct businesses. J.P. Morgan and Guggenheim Securities are serving as financial advisers on this significant transaction, which could be announced as early as Tuesday.
