Resideo to spin off ADI, creating two independent public companies

SCOTTSDALE, Ariz.—Resideo Technologies has announced its intention to separate its ADI Global Distribution business (ADI) through a tax-free spin-off to Resideo shareholders.

Following the completion of the separation, Resideo's Products & Solutions business (P&S) will continue to operate as Resideo, and ADI will become an independent public company. The separation is expected to be completed in the second half of 2026, subject to satisfaction of customary conditions, and does not require shareholder approval. 

"At Resideo, we have instilled strong operational discipline across the enterprise, resulting in independence for each of ADI and P&S,” said Jay Geldmacher, Resideo president and CEO. “Through continued growth and investment, ADI and P&S are leading players in their distinct areas – ADI as a global wholesale distributor of low-voltage products including security and audio-visual solutions, and P&S as 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."

In light of today's announcement, Geldmacher's previously announced retirement will now become effective upon completion of the separation, after which time, he will serve in an advisory capacity for six months. Following the separation, Tom Surran, president of P&S, and Rob Aarnes, president of ADI, will continue leading Resideo and ADI, respectively. 

"ADI and P&S will continue to be led by world-class talent in Rob Aarnes and Tom Surran, both of whom will be able to execute their respective strategies with greater focus, agility and tailored resources,” Geldmacher noted. “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."

Resideo

Resideo will continue to be a building products manufacturer focused on residential controls and sensing solutions that maximize comfort, helps to ensure safety and delivers cost savings and value to homeowners and businesses.

With an expansive network of 100,000 pro installers and over 15 million installations per year, Resideo believes that it will be well positioned to grow its extensive portfolio of connected home solutions across air, safety, security, water, and energy through its brands, including Honeywell Home, First Alert, Braukmann and BRK.

As a standalone business, Resideo will continue to seek to expand its leading positions across attractive residential product categories with long-term, secular growth opportunities and enhanced focus, while continuing to deliver strong margins and cash flow generation.

In the 12-month period ending March 29, 2025, the P&S segment delivered net revenue of $2.6 billion and a segment-adjusted EBITDA margin of 24.2%.

Resideo will release its Q2 2025 financial results and update its annual outlook on Aug. 5, 2025.

ADI

ADI is a global wholesale distributor of low-voltage products, including security and audio-visual solutions.

With a portfolio of over 500,000 professionally installed products, ADI serves both the commercial and residential markets across key specialty categories including security, fire, audio-visual, access control, smart living and data communications. This extensive offering is complemented by an expanding suite of proprietary technologies and services under exclusive brands such as Control4, OvrC, Araknis Networks and WattBox.

ADI expects that its global footprint, omnichannel shopping experience, deep supplier relationships and exclusive brands will remain core competitive advantages. With strong margins, cash flow generation and a differentiated growth profile, ADI believes it will continue to 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 ending March 29, 2025, the ADI segment delivered net revenue of $4.5 billion and a segment-adjusted EBITDA margin of 7.5%