Genuine Parts Co. said it plans to separate its automotive and industrial operations into two independent, publicly traded companies, a move the distributor says will sharpen strategic focus and allow each business to pursue tailored investment and growth strategies.
The Atlanta-based company expects the separation to be completed in the first quarter of 2027, subject to customary conditions.
CEO Will Stengel said the decision follows a comprehensive strategic and operational review of market opportunities and the company’s business structure.
“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,” Stengel said.
Two Scaled Distribution Platforms
The separation will create one company focused on automotive aftermarket distribution and another dedicated to industrial maintenance, repair and operations, or MRO.
The automotive business, referred to as Global Automotive, generated more than $15 billion in sales, according to the company. It operates more than 10,000 locations globally and supports a network of more than 20,000 NAPA Auto Care repair centers in North America. The company estimates the global automotive aftermarket at approximately $200 billion and describes it as driven largely by nondiscretionary repair demand and growth in commercial “do-it-for-me” customers.
The industrial business, operating under the Motion brand as Global Industrial, reported approximately $9 billion in sales and Motion distributes more than 10 million SKUs to over 180,000 customers across 14 end markets, including manufacturing and other industrial sectors. The company estimates the global industrial distribution market it serves at about $150 billion.
While both businesses are large distributors, their demand profiles differ. Automotive aftermarket sales tend to be relatively stable, supported by ongoing vehicle maintenance and repair. Industrial distribution is more closely tied to manufacturing output, capital investment and automation spending.
By separating the units, Genuine Parts said each company will be able to align its capital structure, investment priorities and acquisition strategy more closely with its specific end markets. Both future companies intend to target investment-grade credit metrics and pursue a mix of organic investments and strategic acquisitions.
Competitive Implications for Distributors
The breakup is likely to have implications across wholesale distribution.
As a standalone automotive distributor, Global Automotive is expected to focus on expanding share among commercial repair shops and independent store owners in a fragmented market. Its scale and established NAPA network position it to invest in store growth, technology and supply chain upgrades.
In industrial distribution, Motion would operate as a pure-play MRO and solutions provider. The company cited opportunity in reshoring and nearshoring of manufacturing, automation and robotics investment, artificial intelligence-related infrastructure buildout and demand for technical expertise. Those areas are also priorities for many regional and specialty industrial distributors.
Next Steps
Genuine Parts said there will be no immediate changes to its executive team. The names, leadership teams and boards of directors for the two companies will be announced at a later date.
The company plans to host investor days in the second half of 2026 to outline operational initiatives and long-term strategic goals for both Global Automotive and Global Industrial.
If completed as planned, the transaction will reshape one of North America’s largest distributors into two focused competitors, each positioned to compete in large, fragmented wholesale markets with distinct economic drivers.
