The NAPA brand will increase its ability to capitalize on local customer needs and market trends, including “significant” opportunities with the “do-it-for-me” segment
Atlanta—Genuine Parts Company (GPC) announced on Tuesday its intention to separate the company into two independent, publicly traded companies, one comprising its Automotive Parts Group (Global Automotive) and the other comprising its Industrial Parts Group (Global Industrial). It is targeted for completion in the first quarter of 2027.
“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,” said Will Stengel, Chair-Elect and Chief Executive Officer.
Creating Two Companies
The business separation is the result of a review of market opportunities, in-flight initiatives and business structure considerations across Global Automotive and Global Industrial. Pursuing the separation is expected to create two, scaled market companies, better able to execute their respective strategies by:
- Creating dedicated platforms that improve operating clarity and execution speed at each company to deliver greater customer value and long-term shareholder returns.
- Establishing separate management teams with tailored expertise, strategies and decision-making authority to better address customer needs.
- Providing enhanced financial flexibility to enable investments that accelerate profitable growth, improve productivity and extend market positions.
- Allowing each business to design capital structures and capital allocation strategies aligned with specific business objectives, while targeting investment-grade credit metrics at each company.
- Enabling each business to attract a long-term investor base through a clear, compelling and differentiated investment profile.
Global Automotive: The Largest Global Automotive Aftermarket Solutions Provider
Global Automotive is the largest global network of automotive parts and auto care repair centers, operating in North America, Europe, U.K. and Australasia. Going to market under the globally recognized NAPA brand, amongst others, Global Automotive will be a more focused automotive aftermarket platform able to more effectively capitalize on local customer needs and market trends, including significant growth and market share opportunities with the commercial “do-it-for-me” customer.
Global Automotive has a network of more than 10,000 global locations including a network of over 20,000 NAPA Auto Care repair centers in North America.
Global Industrial: A Diversified Industrial Solutions Provider
Global Industrial, operating under the Motion brand, is an industrial distributor and solutions provider with operations in North America and Australasia. Motion is a provider of “mission critical” industrial maintenance and repair and value-added solutions including fluid power, automation, conveyance and repair services.
There are no changes to the GPC executive team. The company names, executive teams and boards of directors for Global Automotive and Global Industrial will be announced at a later date.
Comments are closed.