Genuine Parts Co (NYSE:GPC) stock surged 4.1% in after-hours trading Friday following reports that the industrial and automotive parts distributor is considering splitting its business units.
The Atlanta-based company is exploring options to separate its industrial parts business from its automotive parts division, according to Bloomberg, citing people familiar with the matter. The company is evaluating various scenarios for its auto parts business, including a potential spinoff. The automotive segment generated approximately 63% of the company’s sales last year.
This potential restructuring comes shortly after Genuine Parts settled with activist investor Elliott Investment Management. Earlier this month, the company added new directors to its board as part of a cooperation agreement with Elliott, which included a commitment to review "operational and strategic value creation initiatives."
As part of the board refreshment, Genuine Parts appointed Courtney Carruthers, former President and CEO of TricorBraun, and Matt Carey, former EVP at The Home Depot, as independent directors effective September 4, 2025. These appointments coincided with the retirement of two long-serving board members.
Marc Steinberg, Elliott Partner, stated during the board restructuring announcement, "We believe the company’s current share price does not reflect the true value of its automotive aftermarket and industrial distribution businesses, and that there is a clear path to creating substantial, long-term value at GPC."
The deliberations about a potential breakup are still in early stages, and the company may ultimately decide to maintain its current structure.
Source :
https://www.investing.com/news/stock-market-news/genuine-parts-stock-soars-on-potential-breakup-consideration-4247510
