Resideo to Separate ADI Business to Form Distinct Public Companies

SCOTTSDALE, Ariz. — Resideo Technologies, Inc., today announces the organization’s intention to separate its ADI Global Distribution business through a tax-free spin-off to Resideo shareholders. Upon completion of the separation, Resideo’s Products & Solutions business (P&S) will continue to operate as Resideo.

As part of the deal, ADI will become an independent public company.

Why Resideo and ADI Are Separating

Resideo has instilled strong operational discipline across the enterprise, says president and CEO Jay Geldmacher, in the joint announcement. This, he notes, has resulted in “independence for each of ADI and P&S.”

ADI is a global wholesale distributor of low-voltage products, including security and audiovisual solutions. Meanwhile, P&S is a building products manufacturer focused on residential controls and sensing solutions.

“We believe a separation is the next, most natural step, allowing ADI and P&S the opportunity to unlock their full potential and better serve all our stakeholders,” says Geldmacher in the joint announcement.

Geldmacher confirms that ADI and P&S will continue to be led by Rob Aarnes and Tom Surran, respectively.

“Both of [them] will be able to execute their respective strategies with greater focus, agility and tailored resources,” he says. “The entire Resideo team is the backbone of these businesses, and, with their continued support and dedication, we are more confident than ever in the future success of each organization.”

Plans for ADI Global Distribution

ADI is a leading global wholesale distributor of low-voltage products. This includes security and AV solutions. It boasts a portfolio of more than 500,000 professionally installed products. ADI serves both the commercial and residential markets across key specialty categories.

These include security, fire, audiovisual, access control, smart living and data communications. An expanding suite of proprietary technologies and services under key exclusive brands, such as Control4, OvrC, Araknis Networks and WattBox, complements this extensive offering.

ADI expects its global footprint, omnichannel shopping experience, deep supplier relationships and exclusive brands to remain core competitive advantages. Pointing to strong margins, cash flow generation and a differentiated growth profile, ADI believes it will be well positioned to organically grow its distribution business and pursue selective M&A opportunities aligned to its go-forward strategic-growth initiatives.

In the 12-month period that ended March 29, the ADI segment delivered net revenue of $4.5 billion and a segment adjusted EBITDA margin of 7.5%.

Plans for Resideo

Resideo, meanwhile, will continue as a leading building products manufacturer. It will remain focused on residential controls and sensing solutions that maximize comfort, help ensure safety, and deliver cost savings and value to businesses and homeowners. The company boasts a network of 100,000 pro installers and more than 15 million installations per year.

In the 12-month period that ended March 29, the P&S segment delivered net revenue of $2.6 billion and a segment adjusted EBITDA margin of 24.2%.

ADI and Resideo Executive Leadership Confirmed

Geldmacher’s previously announced retirement will now become effective upon completion of the separation. After that time, he will serve in an advisory capacity for six months. Additional corporate governance details for Resideo and ADI will be disclosed in the coming months. All appointments are subject to board approval.

The post Resideo to Separate ADI Business to Form Distinct Public Companies appeared first on Security Sales & Integration.



from Security Sales & Integration https://www.securitysales.com/news/resideo-adi-two-public-companies/613354/
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