Genuine Parts Company

Genuine Parts Company is a global distributor of automotive and industrial replacement parts, operating from more than 10,800 locations across North America, Europe, and Australasia and generating $24.3 billion in revenue in fiscal 2025. Through its NAPA Auto Parts brand in North America, its Alliance Automotive Group and Repco operations overseas, and its Motion Industries industrial distribution business, GPC sits at the center of two vast and fragmented aftermarkets — the automotive parts trade and the maintenance, repair, and operations supply chain — that together represent an estimated addressable market of more than $350 billion.

This is a story about a nearly century-old distribution conglomerate attempting its most consequential structural move in decades: the separation into two independent public companies, Global Automotive and Global Industrial, targeted for completion in the first quarter of 2027. The separation is the culmination of a multi-year transformation that has included a global restructuring program, supply chain modernization, a segment reorganization, and an activist engagement — all while the business has absorbed a pension settlement charge, a key vendor bankruptcy, and the operational fallout of the Iran conflict. The central question is whether two focused companies, each with a cleaner equity story and a management team accountable for one business rather than three, can earn a valuation that the combined entity — trading at roughly 10 times adjusted EBITDA on a fiscal 2025 basis — has not been able to achieve on its own.

The file is not a bet on the separation. It is an examination of the businesses underneath it: what each one earns, where each one competes, and what the market is currently paying for the sum of the parts relative to what those parts might be worth standing alone.