Atlanta-based Fortune 500 company Genuine Parts plans to split in two
Genuine Parts Co., the Atlanta-based Fortune 500 parent of NAPA Auto Parts, announced Tuesday it plans to split its auto and industrial parts divisions into two separate public companies.
Company leadership said the proposed split will result in two businesses that are more agile and better positioned for growth and new investments. The new companies — with placeholder names “Global Automotive” and “Global Industrial” — will be anchored by NAPA’s portfolio of auto-care centers and Genuine Parts’ industrial supplier subsidiary Motion.
“Separating our global automotive and global industrial businesses is the best path forward for the company, our people, our customers and our shareholders,” Genuine Parts CEO Will Stengel said on a Tuesday earnings call. “Today, we have two scaled market-leading companies with compelling, but different, growth strategies.”
The announcement, which was first reported by The Wall Street Journal, comes amid a wave of large corporate shake-ups, including in Atlanta. It also adds to a trend of conglomerates unwinding themselves into separate companies focused on more narrow industries, including Warner Bros. Discovery, Kraft Heinz and Atlanta-based NCR.
“The transaction provides clarity in many important ways,” Stengel continued. “Each will have tailored strategies with business-specific investments that are directly aligned to their respective customers and market needs.”
Founded in 1928, Genuine Parts has had its headquarters in Cobb County since the late 1970s. It has a market value of more than $20 billion and operates automotive and industrial parts facilities across about 10,800 locations in 17 countries.
No details were released on whether the planned split will impact headcount at Genuine Parts’ locations, including its Atlanta headquarters.
“Specific details about HQ and facilities for each business will be determined at a later date,” a company spokesperson told The Atlanta Journal-Constitution.
The company’s vast scope coupled with its industries of choice led to Genuine Parts being especially sensitive to tariff and trade changes last year, resulting in a turbulent financial year. Company leadership cited tariffs, low consumer confidence and overseas economic challenges as headwinds that exceeded expectations during 2025.
“Our results fell short of our expectations, entirely driven by weaker sales in Europe and lower sales to independent owners in our U.S. NAPA business,” Bert Nappier, executive vice president and chief financial officer of Genuine Parts, told investors.
Stengel added that Genuine Parts “closed underperforming locations, consolidated distribution centers, reduced head count and reduced general and administrative costs” last year. He added that the company’s financial performance was “in line or better than the market in 2025″ despite the challenges.
The company invested hundreds of millions of dollars last year to rework supply chains and mitigate the impacts of inflation and tariffs. Stengel said “the tariff landscape normalized” by the end of 2025, saying it should lead to more stable predictions for this year.
Both halves of Genuine Parts operations generate profits, which company leadership said should result in two successful independent operations that can stand alone. The auto parts business recorded more than $15 billion in sales last year, while the industrial vertical brought in about $9 billion in revenue.
Genuine Parts last fall entered into a cooperation agreement with activist investor Elliott Investment Management, which resulted in new directors being added to Genuine Parts’ board. Elliott said at the time it was one of Genuine Parts’ largest shareholders.
The split does not require shareholder approval and is expected to be completed in the first quarter of 2027.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
