Home / Business and Economy / O'Reilly Eyes Genuine Parts Automotive Division for $10B+
O'Reilly Eyes Genuine Parts Automotive Division for $10B+
11 Jul
Summary
- O'Reilly Automotive reportedly offered over $10 billion in cash for GPC's automotive division.
- Genuine Parts Company had already begun a tax-free spinoff process for its automotive business.
- The industrial division of GPC is more profitable than its automotive segment.
O'Reilly Automotive has reportedly submitted a cash offer exceeding $10 billion for Genuine Parts Company's (GPC) automotive division. This unsolicited bid surfaced approximately five months after GPC announced its intention to separate its automotive and industrial businesses. The planned separation, initially slated for completion in early 2027, involved a tax-free spinoff.
The automotive division, anchored by the NAPA brand, generated over $15 billion in sales and $1.2 billion in EBITDA last year. It operates through approximately 10,000 stores and distribution points across North America, Europe, and Australasia, supported by over 20,000 independent NAPA AutoCare repair shops.
However, GPC's industrial division, known as Motion, demonstrates stronger profitability. In the first quarter of 2026, the North America Automotive segment reported a 6.6% EBITDA margin, while the Industrial Parts segment achieved 13.6%. This disparity in profitability is a significant driver behind GPC's strategic decision to divest the less profitable automotive arm.
Despite the ongoing separation process, O'Reilly's substantial cash offer suggests a potentially quicker and simpler path to acquiring the automotive assets, bypassing the complexities of a spinoff.
