NAPA Auto Parts store entrance showing corporate logo above door.
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Automotive and industrial parts distributor Genuine Parts will separate into two independent companies, it said on Tuesday, months after a deal with activist investor Elliott Investment Management.
The move follows a comprehensive strategic and operational review of market opportunities, in-flight initiatives and the company’s structure, it said.
The separation into two publicly traded companies – Automotive Parts Group and Industrial Parts Group – follows a settlement late last year with shareholder Elliott.
Activist investors have increasingly pushed companies to simplify corporate structures and shed underperforming or non-core divisions, arguing that leaner businesses unlock greater shareholder value.
The split, which does not require shareholder approval, is expected to be completed in the first quarter of 2027. Company names, executive teams and the boards for the separated companies would be announced at a later date.
Founded in 1928, Genuine Parts now has a market value of roughly $20 billion as its Automotive Parts Group distributes replacement parts around the world, primarily under the NAPA brand name.
Its Motion Industries unit supplies advanced engineered components and technical services to manufacturing and industrial customers across the U.S.
Separately, Genuine Parts forecast full-year 2026 profit below Wall Street estimates. It sees adjusted EPS between $7.50 and $8.00, while analysts expect $8.44, according to data compiled by LSEG.
Shares of the Atlanta-based company, fell nearly 6% in premarket trading on Tuesday
Industrial sales for the fourth quarter was up 4.6% at $2.2 billion from a year earlier.
High interest rates and elevated household expenses have prompted many U.S. consumers to postpone non-essential vehicle maintenance in the past.
Genuine Parts’ adjusted profit for the fourth-quarter was $1.55 per share, compared with analysts’ average estimate of $1.82 per share.
Revenue for the quarter was about $6.01 billion , with estimates of $6.06 billion.
Last year, industrial conglomerate Honeywell announced plans to split into three independent companies following pressure from Elliott.
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