Genuine Parts Company (GPC) announced plans to separate its automotive and industrial divisions into two independent, publicly traded companies. The tax-free transaction targets completion in the first quarter of 2027.
The separation will create Global Automotive, anchored by the NAPA brand, and Global Industrial, operating under the Motion brand. GPC said the move follows a comprehensive strategic and operational review of market opportunities and business structure across both segments.
Highlights
- GPC will split into two public companies — Global Automotive (NAPA) and Global Industrial (Motion) — with a targeted completion in Q1 2027.
- Global Automotive generated more than $15 billion in sales and $1.2 billion in EBITDA in 2025, operating over 10,000 locations worldwide.
- Global Industrial posted approximately $9 billion in sales and more than $1.1 billion in EBITDA in 2025 across North America and Australasia.
- Investor days are planned for the second half of 2026 to detail growth and margin expansion strategies for each business.
Global Automotive Becomes Standalone NAPA Platform
Global Automotive represents the largest global network of automotive parts and auto care repair centers. It operates across North America, Europe, the U.K. and Australasia. The business serves a fragmented $200 billion addressable market driven by non-discretionary demand.
Under the NAPA brand, the automotive unit maintains more than 10,000 global locations. It also operates a dedicated network of over 20,000 NAPA Auto Care repair centers in North America. The company said the standalone structure will sharpen focus on the commercial “do-it-for-me” customer segment.
GPC noted that Global Automotive has been executing technology and supply chain transformation programs. These initiatives are expected to deliver accelerating growth and margin expansion. Additionally, the programs aim to optimize working capital and increase return on invested capital.
Capital and Investment Strategy
Global Automotive will target investment-grade credit metrics with a tailored capital structure. Capital allocation priorities include high-return organic investments across sales, stores, technology and supply chain operations. The company also plans to pursue accretive bolt-on acquisitions alongside a balanced capital return program.
Global Industrial Continues Under Motion Brand
Global Industrial operates as a diversified industrial distributor and value-added solutions provider. Key capabilities include fluid power, automation, conveyance and repair services. The business maintains relationships with over 180,000 global customers and offers more than 10 million SKUs.
Motion competes in a fragmented $150 billion global market. The company said several secular tailwinds support long-term growth, including:
- Reshoring and near-shoring of manufacturing operations
- Automation and robotics adoption
- Artificial intelligence infrastructure build-out
- Increasing scarcity of manufacturing technical expertise
Motion has delivered double-digit EBITDA margins and strong free cash flow generation. The company will continue to pursue strategic acquisitions while maintaining investment-grade credit metrics.
Transaction and Leadership Details
The separation does not require shareholder approval. However, it remains subject to customary conditions. These include final approval from the GPC Board and filing of a Form 10 registration statement with the SEC.
Will Stengel, Chair-Elect and CEO, said the separation creates two focused companies that sharpen customer alignment and simplify operations. He added that the structure enables disciplined, business-specific investments to unlock long-term value.
There are no immediate changes to the GPC executive team. Company names, leadership teams and Boards of Directors for both entities will be announced at a later date. J.P. Morgan and Guggenheim Securities are serving as financial advisors, with King & Spalding LLP as legal counsel.
GPC also released its fourth quarter and full-year 2025 financial results in a separate press release today. Supplemental investor materials are available on the company’s investor relations website.
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