Genuine Parts Company Announces Plan to Separate Automotive and Industrial Businesses Into Two Industry-Leading Public Companies

Core Viewpoint - Genuine Parts Company plans to separate its Automotive Parts Group and Industrial Parts Group into two independent, publicly traded companies to enhance shareholder value and operational focus, with the separation expected to be completed in Q1 2027 [1][2]. Group 1: Separation Details - The separation is anticipated to qualify as a tax-free transaction for U.S. federal tax purposes for shareholders [1]. - The decision follows a comprehensive strategic and operational review aimed at capitalizing on market opportunities and improving business structures [1][2]. - Each new entity will have tailored management teams and capital structures aligned with their specific business objectives [1][2]. Group 2: Global Automotive Overview - Global Automotive is the largest global network of automotive parts and repair centers, generating over $15 billion in sales and $1.2 billion in EBITDA in 2025 [1][2]. - The business operates under the NAPA brand and has over 10,000 locations, targeting a fragmented $200 billion market driven by non-discretionary demand [1][2]. - Global Automotive is focused on technology and supply chain transformations to enhance growth and margin expansion [1][2]. Group 3: Global Industrial Overview - Global Industrial, operating under the Motion brand, generated approximately $9 billion in sales and over $1.1 billion in EBITDA in 2025 [2]. - The business serves over 180,000 global customers and is positioned to capitalize on a $150 billion market through a differentiated value proposition [2]. - Motion aims to maintain strong financial performance with double-digit EBITDA margins and attractive returns on invested capital [2]. Group 4: Transaction and Future Plans - The transaction is expected to be completed in Q1 2027, pending customary conditions and does not require shareholder approval [2]. - Upcoming investor days are planned for the second half of 2026 to discuss operational initiatives and strategic goals for both businesses [2].