Genuine Parts Company is moving to separate its automotive and industrial operations into two independent, publicly traded companies in a transaction targeted for completion in the first quarter of 2027.

It made the announcement in parallel with its Q4 and Full Year 2025 financial results.

The Atlanta-based global distributor, which counts Canada’s UAP Inc. among its holdings, said the planned separation will create one company focused on its Automotive Parts Group, to be known as Global Automotive, and a second centred on its Industrial Parts Group, to be known as Global Industrial. The transaction is expected to qualify as tax-free for U.S. federal income tax purposes for shareholders and will not require shareholder approval.

“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. “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.”

For aftermarket distribution executives, the announcement signals a significant structural shift at one of the world’s largest parts distributors, with implications for supplier alignment, capital allocation and competitive strategy.

Automotive business to stand alone

Global Automotive will operate as the largest global automotive aftermarket solutions provider, generating more than US$15 billion in sales and US$1.2 billion in EBITDA in 2025. The business includes the NAPA brand in North America and international operations under banners including Repco.

The automotive division spans North America, Europe, the U.K. and Australasia, with more than 10,000 locations globally and a network of over 20,000 NAPA Auto Care repair centres in North America.

Genuine Parts Company owns UAP Inc. in Canada, which itself is marking its 100th anniversary this year.

GPC said the business operates in a fragmented US$200 billion addressable market driven largely by non-discretionary demand.

The company noted that Global Automotive has been executing technology and supply chain transformation initiatives aimed at accelerating growth, expanding margins, optimizing working capital and increasing return on invested capital. Following the separation, the automotive business is expected to maintain investment-grade credit metrics and prioritize organic growth, technology investment and bolt-on acquisitions.

Industrial unit to focus on “mission critical” MRO

Global Industrial will operate under the Motion banner and generated approximately US$9 billion in sales and more than US$1.1 billion in EBITDA in 2025.

Motion is positioned as a leading diversified industrial distributor and value-added solutions provider across more than 14 end markets. Its offering includes fluid power, automation, conveyance and repair services, supported by more than 10 million SKUs serving over 180,000 customers worldwide.

GPC said Motion operates in a fragmented US$150 billion global market and is positioned to benefit from long-term tailwinds such as reshoring and near-shoring, automation and robotics, artificial intelligence infrastructure buildout and a shortage of skilled manufacturing labour.

Post-separation, Motion is also targeting investment-grade credit metrics, with capital allocation focused on commercial excellence, technology, supply chain investments and strategic acquisitions.

What comes next

There will be no immediate changes to GPC’s executive team. Company names, executive leadership and boards for Global Automotive and Global Industrial will be announced at a later date.

The separation remains subject to customary conditions, including final board approval and the filing and effectiveness of a Form 10 with the U.S. Securities and Exchange Commission. Investor days are planned for the second half of 2026 to outline operational initiatives and long-term targets for each standalone company.

For the aftermarket distribution community, the split sets the stage for two more sharply focused competitors — each with distinct capital strategies, leadership mandates and growth agendas heading into 2027.