Why This Matters to Distributors: ADI Global’s separation from Resideo creates one of the industry’s largest independent specialty distributors focused on low-voltage products. As a standalone company, ADI is expected to move more quickly on growth initiatives, expand its product offerings and invest in serving security, fire, audiovisual and smart building customers.
Resideo Technologies has approved the spin-off of its ADI Global Distribution business, clearing the way for the specialty distributor to become an independent public company on Aug. 3.
Shareholders who own Resideo stock as of July 20 will receive one share of ADI stock for every two shares of Resideo they own. ADI is expected to begin trading on the New York Stock Exchange on Aug. 4 under the ticker symbol ADIG, while Resideo will continue trading under REZI.
Approval is one of the final steps before the separation. Resideo said the transaction is expected to be completed Aug. 3, subject to the remaining closing requirements. The company also said the spin-off is expected to be tax-free for most U.S. shareholders.
Ahead of the separation, ADI has secured the funding it needs to operate as an independent company.
The company completed a $400 million debt offering and put in place additional borrowing capacity that will support the business after the spin-off. Resideo said the funding will help cover costs related to the separation and provide capital for ADI’s ongoing operations and future growth.
ADI shares are expected to begin trading on a temporary “when-issued” basis around July 29 before regular trading begins Aug. 4. During that period, investors will have the option to buy or sell either company with or without the right to receive ADI shares as part of the spin-off.
Resideo and ADI will each host investor presentations in New York on July 13 and July 14, where executives will outline their strategies and priorities as separate companies.
ADI becomes an independent distributor with a business focused on professionally installed low-voltage products. The company sells more than 500,000 products from more than 1,000 suppliers through an omnichannel network serving commercial and residential customers. Its portfolio includes products for security, fire and life safety, audiovisual systems, and other smart building technologies.
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