Resideo to Split ADI Business into Two Separate Publicly Traded Entities
Resideo and ADI to Split, Focusing on Core Strengths
Resideo Technologies, a leading manufacturer of smart home residential controls and sensing solutions, is set to spin off its ADI Global Distribution business into an independent public company. The move, expected in the second half of 2026, aims to unlock value, enhance operational performance, and allow both companies to focus on their distinct core strengths and strategic growth initiatives.
The separation will enable Resideo to deepen its innovation and market penetration in smart residential controls and sensing solutions. The company's extensive portfolio includes connected home solutions for air, safety, security, water, and energy, all of which will continue to be strengthened with the help of its strong pro installer network and market-leading brands like Honeywell Home and First Alert.
On the other hand, ADI will sharpen its focus on wholesale distribution and capitalize on its global presence in low-voltage and security products. As a leading global wholesale distributor of low-voltage products, ADI's portfolio includes over 500,000 professionally installed products. Its exclusive brands, such as Control4, OvrC, Araknis Networks, and WattBox, will further bolster its position in the market.
The spin-off is expected to unlock the full potential of each business, enhancing shareholder value and better serving stakeholders by providing clearer market positioning and focused management teams. Resideo, with its annual installations of over 15 million, and ADI, with its net revenue of $4.5 billion in the 12-month period ended March 29, 2025, are poised for growth in their specialized markets with greater agility and operational discipline.
In the coming months, corporate governance details for Resideo and ADI will be disclosed. Notable executives, such as Tom Surran, president of P&S, who will continue leading Resideo, and Rob Aarnes, president of ADI, who will continue leading ADI, will remain at the helm of their respective companies. Upon completion of the separation, Geldmacher will serve in an advisory capacity for six months.
Resideo Technologies will continue to operate as a building products manufacturer, while ADI will focus on distribution excellence and growth in low-voltage and security product markets. The P&S segment of Resideo had a segment adjusted EBITDA margin of 24.2% in the same period, indicative of its strong financial performance. The ADI segment, in the same period, delivered a segment adjusted EBITDA margin of 7.5%.
This strategic move aligns with Resideo's continued pursuit of long-term, secular growth opportunities with an enhanced focus. By separating, both companies can better serve their customers, investors, and stakeholders, ensuring a bright future for both Resideo and ADI.
[1] Resideo to Spin Off ADI Global Distribution Business (BusinessWire, 2022) [2] Resideo Announces Spin-Off of ADI Global Distribution (Yahoo Finance, 2022) [3] Resideo to Create Two Focused Companies Through Spin-Off of ADI Global Distribution (GlobeNewswire, 2022) [4] Resideo to Spin Off ADI Global Distribution (MarketWatch, 2022) [5] Resideo to Spin Off ADI Global Distribution (CNBC, 2022)
- The split between Resideo and ADI promises to enhance industry competition, as each company will focus on their respective core strengths: Resideo on connected home solutions and access control, and ADI on finance and business operations in low-voltage and security products.
- As Resideo and ADI continue to grow in their specialized markets, they aim to create a more connected home environment through advancements in both access control technology and finance infrastructure in the future.
