Resideo has remained independent, however, and now just as Honeywell begat Resideo, Resideo will beget ADI. This follows on two recent Honeywell spinoffs in the past year, Solstice Advanced Materials, and Honeywell Aerospace.
Resideo has set the record date and distribution date for the spinoff of ADI Global Distribution, the low-voltage products distributor that has lived inside Resideo since Honeywell’s spinoff of Resideo in 2018.
Resideo shareholders of record as of July 20 are expected to receive one share of ADI common stock for every two shares of Resideo common stock. The distribution is expected to occur at 5:00 p.m. Eastern time on August 3, with ADI beginning regular-way trading on the New York Stock Exchange on August 4 under the ticker ADIG. Resideo will continue trading under REZI. Resideo’s timing announcement is here.
When-issued trading is expected to begin on or about July 29. From then through the distribution date, Resideo expects two trading markets for REZI: regular-way shares that carry the right to receive ADI stock, and ex-distribution shares that trade without that right.
Meet ADI- Low Voltage But High Volume
ADI is a global specialty distributor of professionally installed low-voltage products. Its categories include security, fire and life safety, residential and professional audio-visual products, data communications and related smart-building systems.
The business sells primarily to professional installers, dealers and integrators. According to ADI’s Form 10, it serves more than 100,000 professionals, offers more than 500,000 products from more than 1,000 suppliers, and operates through an omnichannel platform with more than 200 locations and more than 20 distribution centers.
ADI generated $4.8 billion of revenue in 2025 and $318 million of adjusted EBITDA. It is a distribution business, not a high-margin product manufacturer. The case depends on scale, supplier relationships, product breadth, technical support, digital ordering, private-label offerings and the ability to keep serving installers as security, AV, fire/life safety and data communications continue to overlap.
What Will Reside At Resideo
After the spin, Resideo will keep the Products & Solutions business. That business includes residential controls, sensing, safety, security, water, air and energy products sold under brands that include Honeywell Home, First Alert, BRK and others.
The split will leave investors with two clearer companies. ADIG will be a low-voltage distribution platform. REZI will be a connected-home and building-products company.
That is a cleaner structure than the current Resideo, which combines a product manufacturer and a professional distribution business under one roof.
Resideo Was Already A Spinoff
There is a nice recursion here: Resideo itself was a Honeywell spinoff.
Honeywell spun off Resideo in 2018, combining its home products business and ADI distribution unit into a new public company. We wrote about Resideo shortly after the spin, noting that the company included both the home product business and the ADI distribution unit. That earlier Resideo note is here.
Now Resideo is separating those pieces.
The old Honeywell structure put products and distribution together. The new structure gives each business its own board, stock, capital structure and investor base. ADI can be valued against distributors and specialty low-voltage peers. Resideo can be valued as a building-products and connected-home company.
Resideo Cleans Up While ADI Levers Up
The spin is not just a clean handoff of stock.
ADI completed a $400 million senior notes offering and entered into credit facilities that include a $600 million term loan facility and a $500 million revolving facility. ADI expects to have about $1.0 billion of debt at the time of the spin and to pay Resideo an approximately $900 million cash dividend from the financing proceeds, according to the Form 10.
That cash helps Resideo. It also means ADI will start life with leverage and a public-company cost structure.
That is not unusual in spinoffs, but it matters. ADI is a distributor with mid-single-digit adjusted EBITDA margins. It will need to show that scale, Snap One integration, digital tools and category expansion can support growth while carrying its own debt and corporate costs.
Snap One Makes The Story More Interesting
ADI is not only the old security distribution business.
Resideo bought Snap One in 2024 for about $1.4 billion, adding residential AV, Control4 smart-home automation and the OvrC remote-management platform. Those assets now sit inside the ADI story.
That gives ADI more exposure to professional smart-home and residential AV installers, not just traditional security and fire/life safety distribution. It also gives the new company more to prove. The Snap One acquisition helped broaden the platform, but investors will want to see whether the combined business can produce better margins, stronger cash flow and durable growth after the separation.
Resideo’s ADI Spinoff Frees A Captive Distributor
Post-spinoff, ADI will be free to distribute a wider range of products from multiple manufacturers to its large client base. Similarly, Resideo may have new opportunities to sell its products through additional channels.
Mangemement felt that this separation would unlock value by allowing each business to focus on its own growth and allowing the market to value each business at an appropriate multiple. Time will tell whether their gambit leads to gains for investors.
Disclosure: The author owns shares of Solstice