UPDATE 1-Genuine Parts to separate itself into industrial and vehicle businesses

-1.19%

Genuine Parts Company

GPC

105.74

-1.19%

Adds details from paragraph 2 onward

Feb 17 (Reuters) - Automotive and industrial parts distributor Genuine Parts GPC.N said on Tuesday it will separate itself into two independent companies, months after it reached a settlement with activist investor Elliott Investment Management.

The separation into two publicly traded companies – Automotive Parts Group and Industrial Parts Group – follows a settlement late last year with Elliott, the company's largest active shareholder.

Shares of the Atlanta-based company, fell 7% in premarket trading on Tuesday.

Activist investors have increasingly pushed companies to simplify corporate structures and shed underperforming or non-core divisions, arguing that leaner businesses unlock greater shareholder value.

The separation is expected to close in the first quarter of 2027.

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