Resideo Technologies announced its intention to separate its ADI Global Distribution business through a tax-free spinoff to Resideo shareholders. Following the completion of the separation, Resideo's Products and Solutions business ("P&S") will continue to operate as Resideo, while ADI will become an independent public company.
[Pro AV Newsmakers: Acquisitions, Acquisitions, and Yep... More Acquisitions]
"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's 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 audiovisual 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."
Geldmacher, who previously announced his retirement, will officially retire once the separation is complete, 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. Additional corporate governance details for Resideo and ADI will be disclosed in the coming months, and all appointments are subject to board approval.
Resideo will continue to be a building products manufacturer focused on solutions that maximize comfort, help ensure safety, and deliver cost savings and value to homeowners and businesses. With an expansive network of 100,000 pro installers and more than 15 million installations per year, Resideo believes that it will be well positioned to grow its extensive portfolio.
As a global wholesale distributor of low-voltage products, including security and audiovisual solutions, ADI has a portfolio of more than 500,000 professionally installed products. It serves both the commercial and residential markets across key specialty categories including security, fire, AV, access control, smart living, and data communications.
The separation is intended to be tax-free for U.S. federal income tax purposes and is expected to be completed in the second half of 2026, subject to satisfaction of customary conditions.