Resideo Technologies Completes Spin-Off of ADI Global Distribution

Rhea-AI Summary

Resideo Technologies (NYSE: REZI) has completed the spin-off of ADI Global Distribution, positioning Resideo as a pure-play building technologies company. ADI common stock begins regular-way trading on the NYSE under ticker ADIG, while Resideo continues under REZI.

The spin-off was executed via a pro rata distribution of all outstanding ADI shares at a rate of 1 ADI share for every 2 Resideo shares held as of July 20, 2026, with cash paid in lieu of fractional shares. In connection with the transaction, Resideo repaid $900 million of principal under its Term Loan B facility and expects to repay approximately $200 million more by the end of the third fiscal quarter, subject to a post-closing cash adjustment with ADI. Resideo’s Series A preferred stock was reduced by 150,000 shares to 350,000 shares outstanding, with a proportional adjustment to the conversion price.

Positive

• Spin-off of ADI completed, creating a pure-play building technologies company
• Distribution ratio of 1 ADI share for every 2 Resideo shares
• $900 million Term Loan B principal repaid at spin-off closing
• Expected additional Term Loan B repayment of approximately $200 million by end of Q3
• Series A preferred stock reduced by 150,000 shares to 350,000 outstanding

Negative

• After reduction, 350,000 Series A preferred shares remain outstanding

Market Context

REZI's two recent strategy announcements produced 4.12% and 4.3% 24-hour gains, providing a positive...

Analysis

REZI's two recent strategy announcements produced 4.12% and 4.3% 24-hour gains, providing a positive historical comparison for this separation. The platform also records low short positioning; debt execution remains the key factor to monitor.

Key Figures

Debt repaid: $900 million Further debt repayment: approximately $200 million Preferred stock outstanding: 350,000 shares +5 more

8 metrics

Debt repaid $900 million Term Loan B principal repaid at spin-off completion

Further debt repayment approximately $200 million Expected under Term Loan B following post-closing cash adjustment

Preferred stock outstanding 350,000 shares Resideo Series A preferred stock remaining after spin-off

Preferred stock reduction 150,000 shares Series A preferred stock reduction in connection with spin-off

Distribution ratio 1 ADI share for every 2 Resideo shares Shares held of record as of July 20, 2026

Record date July 20, 2026 Resideo shares held of record for ADI distribution

Trading start August 4, 2026 ADI regular-way trading under ticker ADIG

Repayment deadline end of the third fiscal quarter Expected timing for further Term Loan B repayment

Historical Context

5 past events · Latest: Jul 28 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 28	Earnings date notice	Neutral	+4.0%	ADI scheduled second-quarter 2026 results and an August 13 webcast
Jul 22	Earnings date notice	Neutral	-0.1%	Resideo scheduled second-quarter 2026 results and a conference call
Jul 14	Investor strategy update	Positive	+4.1%	ADI outlined standalone strategy, savings targets, and medium-term financial objectives
Jul 13	Investor strategy update	Positive	+4.3%	Resideo presented pure-play strategy and 2025–2030 financial framework
Jul 01	Spin-off transaction notice	Neutral	-1.5%	Board set record date, distribution timing, and ADI financing arrangements

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive strategy announcements aligned with gains in two recent cases, while scheduling and transaction notices showed mixed reactions.

Key Terms

spin-off, term loan b, regular-way trading, conversion price

4 terms

spin-off financial

"announced the completion of its spin-off of ADI Global Distribution Inc."

A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.

View in glossary

term loan b financial

"repaid $900 million of outstanding principal under its Term Loan B credit facility."

A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.

regular-way trading technical

"ADI's common stock will begin "regular-way" trading today on the New York Stock Exchange"

Regular-way trading is the standard process for buying and selling securities where the trade is completed and ownership is transferred on the market’s normal settlement date (commonly two business days after the trade). It matters to investors because it determines when you legally own the shares, when payment is due and when you qualify for dividends or other corporate actions—think of it like a purchase with a fixed delivery date that affects your rights and responsibilities.

conversion price financial

"with a proportional adjustment to the conversion price thereof."

The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Positioned To Accelerate Profitable Growth and Innovation as a Pure-Play Building Technologies Company

Repaid $900 Million of Indebtedness and Preferred Stock Reduced to 350,000 Shares Outstanding

ADI Begins Trading Today on the New York Stock Exchange Under Ticker "ADIG"

SCOTTSDALE, Ariz., Aug. 4, 2026 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI) ("Resideo"), a leading global developer and manufacturer of critical control and sensing solutions for residential end markets, today announced the completion of its spin-off of ADI Global Distribution Inc. ("ADI"), establishing Resideo as a pure-play building technologies company. Resideo will continue to trade on the New York Stock Exchange under the ticker symbol "REZI" and ADI's common stock will begin "regular-way" trading today on the New York Stock Exchange under the ticker symbol "ADIG".

"With trusted and iconic brands, deep relationships with pros and a 140-year heritage of innovation, Resideo is poised to start this next chapter as a pure-play building technologies company," said Tom Surran, President and Chief Executive Officer of Resideo. "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."

The spin-off was completed through the distribution of all of the issued and outstanding shares of ADI common stock to Resideo common shareholders on the basis of one share of ADI common stock for every two shares of Resideo common stock held of record as of the close of business on July 20, 2026. Resideo shareholders of record will also receive cash in lieu of any fractional shares to which they would otherwise be entitled.

In connection with the spin-off, Resideo repaid $900 million of outstanding principal under its Term Loan B credit facility. Resideo expects to make a further repayment of approximately $200 million under its Term Loan B credit facility following the completion of the post-closing cash adjustment under the separation agreement with ADI. Resideo expects to make this repayment by the end of the third fiscal quarter. Additionally, the outstanding Resideo Series A Cumulative Convertible Participating Preferred Stock was reduced by 150,000 shares in connection with the completion of the spin-off, leaving 350,000 shares outstanding, with a proportional adjustment to the conversion price thereof.

About Resideo

Resideo is a global building technologies company that is a leading developer and manufacturer of critical control and sensing solutions for residential markets. The company serves professional installers and integrators across diverse product segments, such as heating, ventilation, and air conditioning controls, combustion, life safety, security, and water. Its comfort and protection solutions can be found in more than 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. More information about Resideo and its trusted brands, including BRK, First Alert, and Honeywell Home, is available at www.resideo.com.

Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, those regarding our anticipated market positioning and financial and operational performance following the separation of our ADI Global Distribution business from Resideo Technologies, Inc. and other future events or developments. Forward-looking statements are typically identified by such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements are the possibility that the separation may not achieve the intended strategic, operational, or financial benefits for Resideo, its businesses, or its shareholders; that Resideo may experience operational or other disruptions as a result of the separation, including those relating to information technology systems, business processes, internal controls, customer and vendor relationships, and workforce alignment. Resideo's ability to succeed as an independent enterprise without ADI will depend on numerous factors, including the execution of its strategies and plans, access to capital markets, the competitive landscape, and general business and economic conditions. Other risks and uncertainties include, but are not limited to, our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, and the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic reports.

All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of Resideo to differ materially from such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward-looking statements.

Contacts:

Investors:

Christopher T. Lee
Global Head of Strategic Finance
investorrelations@resideo.com

Media:

Kevin Hunt
Communications Director
kevin.hunt@resideo.com

Or

Dan Moore, Tali Epstein
Collected Strategies
Resideo-CS@collectedstrategies.com

 

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SOURCE Resideo Technologies, Inc.

FAQ

What did the Resideo (REZI) spin-off of ADI Global Distribution (ADIG) involve on August 4, 2026?

Resideo completed a spin-off of ADI Global Distribution, distributing all ADI shares to Resideo shareholders. According to Resideo, this established Resideo as a pure-play building technologies company while ADI now trades separately on the NYSE under ticker ADIG.

What is the share distribution ratio for ADI Global Distribution (ADIG) to Resideo (REZI) shareholders?

Resideo distributed one share of ADI common stock for every two shares of Resideo common stock held. According to Resideo, shareholders of record on July 20, 2026 also receive cash in lieu of any fractional ADI shares otherwise issuable.

When did ADI Global Distribution (ADIG) start trading on the NYSE after the Resideo spin-off?

ADI Global Distribution common stock began regular-way trading on the New York Stock Exchange on August 4, 2026 under ticker ADIG. According to Resideo, its own shares continue to trade on the NYSE under ticker REZI following the separation.

How did the ADI spin-off affect Resideo’s (REZI) debt and Term Loan B facility?

In connection with the spin-off, Resideo repaid $900 million of Term Loan B principal. According to Resideo, it also expects to repay approximately $200 million more after a post-closing cash adjustment, targeting completion by the end of the third fiscal quarter.

What happened to Resideo’s Series A preferred stock after the ADI (ADIG) spin-off?

Resideo’s Series A Cumulative Convertible Participating Preferred Stock was reduced by 150,000 shares at spin-off completion. According to Resideo, this leaves 350,000 preferred shares outstanding and includes a proportional adjustment to the preferred stock’s conversion price.

What does the ADI Global Distribution (ADIG) spin-off mean for Resideo’s business focus?

The spin-off leaves Resideo operating as a pure-play building technologies company focused on control and sensing solutions. According to Resideo, management aims to apply dedicated strategic, operational, and financial focus to pursue profitable growth and sustained margin expansion.