By Lauren Thomas

Genuine Parts, the big owner of NAPA auto-care centers, said Tuesday it plans to separate its auto and industrial parts units to create two separate public companies.

The details

The split is the culmination of a review the Atlanta-based company has been undergoing with financial advisers. The Wall Street Journal reported earlier Tuesday that the deal announcement was imminent.

The breakup is part of a bid to allow each unit to better execute and grow in their respective markets, Genuine Parts said. It will give the two businesses more flexibility to make big investments to accelerate growth.

Investors have recently been favoring corporate breakups across a range of industries to create more streamlined businesses. Faster-growing units within larger businesses can get weighed down by other divisions, or as strategic plans for different units start to diverge.

Genuine Parts has a market value of more than $20 billion. Founded in 1928, the firm is a major player in automotive and industrial parts and has around 10,800 locations spanning 17 countries.

The company's automotive business is the biggest network of automotive parts and auto-care repair centers globally, operating under banners including NAPA. The company's industrial business operates under the Motion brand and supplies millions of parts across industries that keep industrial machinery running.

The auto-parts business generated more than $15 billion in sales in 2025, while the industrial unit brought in roughly $9 billion in revenue.

The context

Genuine Parts shares had risen roughly 20% year to date through Friday. Investors see tailwinds including aging vehicles and machinery, which bode well for demand for replacement parts and repair services. The industrial segment could also benefit from a focus on reinvesting in American infrastructure under the Trump administration.

Chief Executive Will Stengel has been in the role since June 2024, with a focus on boosting profitability. Stengel said Tuesday that the company is focusing on what it can control in a "dynamic environment."

Last fall, Genuine Parts added new directors to its board following a cooperation agreement with activist investor Elliott Investment Management. Elliott said at the time that it was one of Genuine Parts' largest shareholders and that the company's share price didn't reflect the full value of its two businesses.

J.P. Morgan served as the lead financial adviser on the breakup transaction. Guggenheim Securities is also a financial adviser.

Write to Lauren Thomas at lauren.thomas@wsj.com

(END) Dow Jones Newswires

February 17, 2026 07:17 ET (12:17 GMT)

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