Genuine Parts Company plans a tax-free separation of its automotive and industrial operations into two publicly listed companies by early 2027.

The US-based automotive parts distributor said the proposed transaction would establish two standalone businesses: Global Automotive and Global Industrial.

Global Automotive will focus on aftermarket automotive parts and repair networks, operating under brands such as NAPA and Repco.

Global Industrial will comprise the industrial distribution and services arm, trading under the Motion brand.

The separation is subject to standard conditions, including board approval and registration with the US Securities and Exchange Commission.

Shareholder approval is not required.

Global Automotive recorded more than $15bn in revenue and $1.2bn in EBITDA in 2025.

The division operates over 10,000 locations worldwide and supports a network of more than 20,000 NAPA Auto Care repair centres across North America.

The business serves an estimated $200bn automotive aftermarket and is advancing technology and supply-chain initiatives aimed at improving growth and margins.

Global Industrial generated about $9bn in sales and over $1.1bn in EBITDA in 2025.

Operating under the Motion name, it provides maintenance, repair and automation products across more than 14 manufacturing sectors.

It offers over 10 million stock keeping units (SKUs) to more than 180,000 customers in North America and Australasia.

The unit targets expansion in a fragmented $150bn industrial distribution market, supported by re-shoring, automation and AI-related infrastructure investment.

Genuine Parts said the move follows a strategic and operational review of both divisions and is designed to give each business dedicated leadership, customised capital structures and increased financial flexibility.

Company names, management teams and board appointments will be disclosed later, with further operational and strategic updates planned at investor events for both entities in the second half of 2026.

Separately, Genuine Parts reported fourth-quarter 2025 sales of $6bn, up 4.1% year-on-year.

The group posted a net loss of $609m, compared with net income of $133m in the prior-year period.

Adjusted net income totalled $216m versus $224m a year earlier, reflecting $825m in net non-recurring charges, mainly a one-off non-cash pension settlement expense tied to the termination of its US defined-benefit plan.