Prnewswireยท2025-07-30 11:01Core Viewpoint - Resideo Technologies, Inc. plans to separate its ADI Global Distribution business through a tax-free spin-off, expected to be completed in the second half of 2026, allowing both entities to enhance operational performance and strategic flexibility [1][9]. Company Overview - Resideo is a leading global manufacturer and distributor of technology-driven sensing and controls products for residential and commercial markets, with a focus on maximizing comfort, safety, and cost savings [3][16]. - The Products & Solutions (P&S) segment generated net revenue of $2.6 billion with an adjusted EBITDA margin of 24.2% for the twelve-month period ending March 29, 2025 [4]. - ADI Global Distribution is the leading global wholesale distributor of low-voltage products, with net revenue of $4.5 billion and an adjusted EBITDA margin of 7.5% for the same period [7]. Strategic Rationale - The separation is intended to allow both ADI and P&S to unlock their full potential and better serve stakeholders by focusing on their distinct business models [2]. - ADI will continue to leverage its global footprint and exclusive brands to maintain competitive advantages in the low-voltage products market [6][7]. Financial Expectations - Resideo anticipates its second quarter 2025 financial results will exceed previous outlooks, projecting net revenue between $1.805 billion and $1.855 billion, with adjusted EBITDA of $175 million to $195 million [11][12]. Transaction Details - The spin-off does not require shareholder approval and is subject to customary conditions, including board approval and regulatory approvals [9]. - Resideo has entered into an agreement with Honeywell to accelerate a one-time cash payment of $1.59 billion, eliminating future monetary obligations under the Indemnification Agreement [10].