Genuine Parts jumps 12.9% on O'Reilly bid for auto unit

Genuine Parts Co. jumped 12.9% on heavy volume after O'Reilly Automotive Inc. made a bid for the company's automotive parts unit, people familiar with the matter told Bloomberg News.

The bid from O'Reilly, one of the largest U.S. automotive aftermarket retailers, sent GPC shares to their biggest single-day gain in recent history. Trading volume far exceeded the 20-day average, reflecting heightened investor interest in the potential transaction.

Genuine Parts operates two segments: automotive parts distribution under the NAPA brand and industrial parts through its Motion division. The O'Reilly bid targets the automotive unit. Terms of the proposal, including the offer price and payment structure, have not been disclosed.

The stock's surge comes as earnings estimate revisions have turned less favorable. Analysts have trimmed forward earnings expectations for GPC in recent weeks, suggesting the 12.9% move was driven primarily by the M&A premium rather than operational improvement. The company is scheduled to report its next quarterly results in late July.

A deal would combine two of the largest players in the automotive aftermarket industry, which has been consolidating as parts distributors seek scale to manage inventory costs and compete with online retailers. O'Reilly operates more than 6,000 stores across the U.S., while Genuine Parts' NAPA network includes roughly 6,000 locations.

Any transaction would require regulatory approval and is subject to negotiation. Neither Genuine Parts nor O'Reilly has publicly commented on the bid.

This article is for informational purposes only and does not constitute investment advice.