Weekly Rankings by The Resi: August 8, 25th Edition
Resideo, a leading manufacturer of building products, has announced plans to separate its ADI Global Distribution business, creating two independent public companies. The move is designed to unlock the full potential of both businesses and better serve their stakeholders.
The upcoming spin-off will result in ADI Global Distribution - a global wholesale distributor specializing in low-voltage products such as security and audio-visual solutions - and Products & Solutions (P&S), which will continue as Resideo, focusing on manufacturing building products, particularly residential controls and sensing solutions.
This tax-free distribution to Resideo shareholders will allow each business to operate independently with tailored strategies and resources. Rob Aarnes will serve as President of ADI, while Tom Surran will lead Products & Solutions. Current Resideo President and CEO, Jay Geldmacher, will retire upon completion of the separation but remain an advisor for six months afterward.
The separation aims to enhance strategic focus, agility, and financial flexibility for both companies. In connection with this transition, Resideo signed an agreement to accelerate payment of approximately $1.59 billion to Honeywell in Q3 2025, which enhances strategic and financial flexibility, helping fund the spin-off.
The two companies are expected to maintain strong financial metrics through and after the separation, demonstrating confidence in both businesses' future returns. The split will also allow each company to focus on its specific market and growth opportunities.
Other significant changes include Tom Conrad being named as the CEO of Sonos, and D-Tools securing a $12M Series C investment led by the former SnapOne CEO.
Additional corporate governance and operational details will be announced in the coming months, subject to board approval. The exact timeline and details of the separation are yet to be announced, but the split is expected to be completed by the end of 2025.
In the meantime, other notable events in the industry include Epson debuting a new under $4000 4K HDR laser projector, StormAudio showcasing the Core 16+ and new product previews at the CEDIA Expo, and a new king of TV being crowned at the Value Electronics TV Shootout. An article titled "The Perfect Exit" remains among the most visited stories on the website, along with "How to Sell Landscape Lighting Design" and "The Unseen Engine of Operational Excellence."
[1] Resideo Press Release [2] Seeking Alpha Article [3] GlobeNewswire Article [4] Yahoo Finance Article [5] CE Pro Article
- As Resideo and ADI Global Distribution prepare to separate, there will be a shift in focus for both companies, with ADI specializing in data-and-cloud-computing and technology-based gadgets like security and audio-visual solutions, while Resideo continues to manufacturer building products, including residential controls and sensing solutions.
- The ongoing technological advancements in the industry are evident, as shown by the separation of Resideo and ADI Global Distribution, the debut of a new under $4000 4K HDR laser projector by Epson, and the upcoming announcements of additional corporate governance and operational details.
