Genuine Parts to separate automotive and industrial businesses following activist investor deal

Genuine Parts Company GPC announced on February 17, 2026, that it will separate its automotive and industrial businesses into two independent, publicly traded companies. This structural corporate split follows a settlement with activist investor Elliott Investment Management and involves reorganizing a company with an approximate market value of $20 billion. The transaction, which does not require shareholder approval, will carve out the industrial business from the automotive business to create two standalone entities.

Following the announcement, shares of the company fell more than 12%. This decline was driven by the issuance of annual profit guidance that came in below analysts' expectations. Data provided by LSEG highlighted the gap between the company's projections and Wall Street estimates. This market movement occurred within the broader context of the US US equity markets, which include major corporations such as PepsiCo, Inc. PEP and Honeywell International Inc. HON.