Shares of Genuine Parts Company have failed to recover significant market value in the weeks following the announcement that the company will split its automotive and industrial businesses into two independent entities.
The downturn began Feb. 17, when the Atlanta-based company unveiled its separation plan alongside fourth-quarter results that missed expectations and included a weaker 2026 outlook.
Under the plan, the company will separate into two publicly traded businesses by the first quarter of 2027. One, Global Automotive, will include the NAPA distribution network. The other, Global Industrial, will consist of the Motion business.
“As GPC has evolved with its markets for nearly a century, today’s announcement to separate our automotive and industrial businesses is another exciting step forward in our history that is expected to unlock value for our stakeholders and better position our businesses for an even stronger future,” said Will Stengel, chair-elect and CEO (pictured), according to a press release.
Following the announcement, the stock fell by about 14%, dropping from roughly US$147 to the mid-US$120s and erasing approximately US$3 billion in market value.
The decline continued in March. The stock fell below US$100 and reached about US$96 on March 19, marking its lowest level in roughly a year.
Currently the distributor's shares are trading between US$100–US$105, down roughly 30% or US$40 below pre-announcement levels.
The transaction is expected to close in the first quarter of 2027, subject to board approval and regulatory conditions.
The announcement followed changes to the organization's leadership structure implemented in January. On Jan. 15, Genuine Parts Company announced its board chair Paul Donahue would retire. Stengel, then president and chief executive officer, was announced as his successor.
According to a press release, the transition was part of an ongoing effort to evaluate opportunities to improve performance and unlock shareholder value. The changes came after a 2025 cooperation agreement with Elliott, under which the New York-based firm gained board representation and the company initiated a strategic and operational review.
Collision Repair approached Genuine Parts for comment on this story but did not receive a response before the time of publication.
