Resideo Completes ADI Global Distribution Stock Spinoff
The separation positioned Resideo as a pure-play building-technologies company focused on profitable growth and innovation.
Resideo Technologies Inc. (REZI) completed the spinoff of ADI Global Distribution Inc. (ADIG), separating its distribution operation from its building-products business through a stock distribution to Resideo shareholders. The transaction established Resideo as a pure-play building-technologies company to sharpen its focus on profitable growth and product innovation.
Resideo shareholders received one share of ADI common stock for every two Resideo shares they owned. The distribution had been scheduled for Aug. 3, with ADI set to become an independently traded company the following day. The spinoff was expected to qualify as tax-free to Resideo shareholders for U.S. federal income-tax purposes, except for cash paid in lieu of fractional shares, and required no shareholder vote.
The separation gave each company its own management, capital structure and operating priorities. Resideo retained the products-and-solutions business, centered on residential sensing and controls, while ADI became a stand-alone distributor serving commercial and residential markets. The narrower structure would allow Resideo to direct investment toward differentiated products, adjacent categories and international expansion. Its strategy also leaned on relationships with more than 100,000 professional installers and an installed base spanning more than 150 million locations.
“With dedicated strategic, operational and financial focus, we are ready to capture the profitable growth opportunities ahead and drive above market growth and sustained margin expansion,” Resideo President and Chief Executive Officer Tom Surran said.
ADI entered independence as a global wholesale distributor of low-voltage products, including security, fire, audiovisual, access-control, smart-living and data-communications equipment. Its catalog included more than 500,000 professionally installed products, supported by supplier relationships, an omnichannel sales platform and proprietary brands such as Control4, OvrC, Araknis Networks and WattBox. ADI generated $4.8 billion in fiscal 2025 revenue and $295 million in stand-alone adjusted earnings before interest, taxes, depreciation and amortization.
The transaction also divided the businesses’ financial profiles. ADI expected to incur about $1 billion of new funded debt and pay Resideo a roughly $900 million one-time dividend, while Resideo planned to use those proceeds and cash to repay part of its existing term loans. ADI had completed a $400 million senior-notes offering and arranged a $600 million term loan and a $500 million revolving facility ahead of the distribution. Resideo’s next phase now rests on converting a more concentrated portfolio and installer network into the above-market growth and margin expansion management outlined before the separation.