U.S. Automotive and Industrial Parts Distributor Plans Spin-Off IPO by 2027

Genuine Parts Company (GPC) announced on the 17th that it will separate its automotive parts division, Global Automotive, and its industrial parts division, Global Industrial (the Motion brand), into two independent publicly traded companies by the first quarter of 2027. The company expects the spin-off to be tax-free to existing shareholders under U.S. federal income tax rules and said the move follows a strategic review aimed at enabling each division to sharpen its operational focus and bolster its investment capacity.

In 2025, Global Automotive posted over $15 billion in annual revenue and approximately $1.2 billion in EBITDA—equivalent to about KRW 20 trillion and KRW 1.6 trillion, respectively—while Global Industrial, including the Motion business, generated $9 billion in revenue and $1.1 billion in EBITDA (roughly KRW 12 trillion and KRW 1.4 trillion).

The spin-off remains subject to customary conditions—final board approval and the effectiveness of the Form 10 filing with the SEC—without requiring a shareholder vote. The names, management teams, and board compositions of the two new companies will be announced in due course. GPC also plans to host a dedicated investor presentation in the second half of 2026 to outline detailed plans for business structure and capital policy.

Separately, GPC revealed a governance change under which non-executive Chairman Paul Donohue will step down after the 2026 annual meeting, and current President and CEO Will Stengel will assume the role of board chair. The company has maintained a stable shareholder-return policy, steadily increasing its dividend payments in recent years and retaining its quarterly dividend for 2025.

Through its NAPA Auto Parts and Motion brands, GPC is a leading distributor of automotive and industrial replacement parts in 17 countries across North America, Europe, and beyond, operating over 10,000 distribution locations and roughly 20,000 NAPA AutoCare centers worldwide. In the fragmented markets estimated at about $200 billion for the automotive aftermarket and $150 billion for industrial parts (approximately KRW 260 trillion and KRW 200 trillion, respectively), competition among large distributors for economies of scale and for investments in digitalization and automation continues to intensify.