Adds details throughout, full-year forecast and Q4 earnings in paragraphs 6 & 7

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

The business separation follows a comprehensive strategic and operational review of market opportunities, in-flight initiatives and the company's structure, the company said.

The separation into two publicly traded companies – Automotive Parts Group and Industrial Parts Group – follows a settlement late last year with shareholder Elliott.

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, which does not require shareholder approval, is expected to close in the first quarter of 2027. Company names, executive teams and the boards for the separated companies would be announced at a later date.

Separately, Genuine Parts forecast full-year 2026 profit below Wall Street estimates. It sees adjusted EPS between $7.50 and $8.00, while analysts expect $8.44, according to data compiled by LSEG.

Industrial sales for the fourth quarter was up 4.6% at $2.2 billion from a year earlier.

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