- O’Reilly Automotive Inc. has made a $10 billion bid to acquire Genuine Parts Company.
- Genuine Parts Company owns NAPA Auto Parts.
- Genuine Parts Co. plans to spin off its auto parts unit and industrial operations by early next year.
If you’ve ever had work done on your car, you’ve probably stepped inside an auto parts store. But if the company that owns O’Reilly Auto Parts gets its way, the landscape of offerings could soon change drastically.
according to a new bloomberg O’Reilly Automotive Inc. has made a $10 billion bid to acquire Genuine Parts Co.’s aftermarket auto parts unit, which also includes NAPA Auto Parts, the report said, citing “people familiar with the matter.” It is unclear whether Genuine Parts will accept the bid, keep the unit or sell it to another bidder.
Genuine Parts announced in February that it intends to separate its auto parts unit and industrial operations into two publicly traded companies. At the time, GP CEO Will Stengel said:
‘The creation of two focused, independent companies accelerates customer and market alignment, increases clarity and speed, simplifies operations and enables disciplined, business-specific investments to unlock long-term value.’
What will O’Reilly Automotive Inc. get?
Genuine Parts’ auto operations include more than 10,000 global locations, including Australia, with more than 6,000 NAPA Auto Parts stores in the United States. The company’s auto unit projects sales of more than $15 billion in 2025, its 100th year of operation.
It’s unclear what O’Reilly Automotive Inc. plans to do with the acquisition. bloombergGenuine Parts is expected to divest the business by early 2027, with an announcement expected as soon as this summer, the sources said.
The news sent Genuine Parts’ share price up 13 percent, while O’Reilly Automotive fell 2.6 percent. According to the publication, the volatility of the automotive industry has led investors to prefer companies with simpler portfolios.
Motor1’s Opinion: Less competition is never good for the consumer, and the last thing consumers need right now is less choice. This often leads to higher prices, lower quality service, and frustrated owners.
