Resideo Technologies Inc. took a major step in its corporate restructuring, filing a Form 10 registration statement to spin off its ADI Global Distribution business, a unit with roughly $4.8 billion in annual revenue. The separation is expected to be completed between the middle of the third quarter and the middle of the fourth quarter of 2026, creating a new publicly traded entity, ADI Global Distribution Inc.
"Today's filing reflects the tremendous progress we have made to launch two industry-leading companies, each extremely well positioned to better serve customers and unlock shareholder value," said Jay Geldmacher, President and CEO of Resideo, in a statement.
The filing details ADI's financial foundation, which includes fiscal year 2025 revenue of approximately $4.8 billion, a net loss of $261 million, and $318 million in adjusted EBITDA. Following the separation, Robert Aarnes, who has led ADI since 2018, will become its President and CEO. Thomas Surran, currently President of Resideo's Products and Solutions business, will take over as President and CEO of the remaining Resideo company.
The move aims to create two focused companies, with ADI operating as a global distributor of low-voltage products and Resideo concentrating on its sensing and controls solutions. ADI's common stock is expected to list on the New York Stock Exchange under the ticker symbol "ADIG." Both companies plan to host investor days in mid-July to outline their respective strategies ahead of the transaction, which is intended to be tax-free for Resideo shareholders.
Jay Geldmacher, Resideo's current CEO, will retire upon completion of the spinoff, serving in an advisory capacity for six months. The new ADI board will be chaired by Michael Kaufmann, former CEO of Cardinal Health, while Andrew Teich will remain Chairman of the Resideo board.
The transaction is subject to final approval from Resideo's Board of Directors and other customary conditions. Resideo is also actively searching for a new Chief Financial Officer.
This article is for informational purposes only and does not constitute investment advice.
