Resideo plans to spin off ADI business into separate public companies

Resideo Technologies Inc. (NYSE: REZI) announced plans to separate its ADI Global Distribution business through a tax-free spin-off to shareholders, creating two independent public companies. The separation is expected to be completed in the second half of 2026.

Following the separation, Resideo's Products & Solutions business will continue operating as Resideo, while ADI will become a standalone public company. The transaction does not require shareholder approval but remains subject to customary conditions including board approval and SEC registration.

CEO Jay Geldmacher stated the separation would allow each business to execute strategies with greater focus and agility. Tom Surran, President of Products & Solutions, will lead Resideo after the separation, while Rob Aarnes, President of ADI, will head the independent ADI company. Geldmacher's previously announced retirement will become effective upon completion of the separation.

For the twelve-month period ended March 29, 2025, the Products & Solutions segment generated $2.6 billion in net revenue with a 24.2% adjusted EBITDA margin. The ADI segment delivered $4.5 billion in net revenue with a 7.5% adjusted EBITDA margin.

Separately, Resideo announced an agreement with Honeywell International Inc. (NASDAQ: HON) to eliminate future monetary obligations under their Indemnification and Reimbursement Agreement. Resideo will make a one-time cash payment of $1.59 billion to Honeywell in the third quarter of 2025, terminating the agreement and eliminating annual payments of up to $140 million through 2043.

The company also expects its second quarter 2025 financial results to exceed the high end of its previously provided outlook range and anticipates reporting approximately $750 million in total cash as of June 28, 2025.

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