Resideo Technologies has completed the spin-off of ADI Global Distribution, separating the wholesale distribution business into an independent publicly traded company that began trading on the New York Stock Exchange on Aug. 4 under the ticker symbol “ADIG.”

The separation was completed through the distribution of all outstanding ADI common stock to Resideo shareholders. Shareholders of record as of July 20 received one share of ADI common stock for every two shares of Resideo common stock they owned. Shareholders also will receive cash in lieu of fractional shares.

Resideo will continue trading on the NYSE under the ticker symbol “REZI,” while ADI now operates as an independent public company.

Jay Geldmacher, Resideo’s former president and CEO, said the transaction marks “the beginning of an exciting new chapter for both Resideo and ADI.”

“As independent companies, each is well-positioned to execute focused strategies, capitalize on its unique strengths and pursue long-term growth opportunities,” Geldmacher said.

Companies outline post-separation priorities

Following the separation, Resideo said it will concentrate on its products and solutions portfolio, including residential controls and sensing technologies. The company said it plans to continue investing in innovation, strengthening its market position and expanding its product offerings while focusing on long-term shareholder value.

Tom Surran, who became Resideo’s president and CEO upon completion of the spin-off, said the company is entering “a new era.”

“We have a strong foundation, a clear strategy and a talented team dedicated to delivering innovative solutions that enhance comfort, security and efficiency in homes and businesses around the world,” Surran said.

ADI said its new status as an independent company will allow it to focus on its core wholesale distribution business serving professional contractors and integrators.

“Today marks an exciting milestone for ADI as we embark on our journey as an independent public company,” said Rob Aarnes, president and CEO of ADI Global Distribution. “As a standalone company, we are better positioned to build on our strengths, execute our growth strategy and continue delivering exceptional value to our customers, suppliers, employees and shareholders.”

Transaction supports Resideo debt reduction

In connection with the separation, Resideo repaid $900 million of outstanding principal on its Term Loan B credit facility. The company said it expects to repay an additional approximately $200 million following completion of a post-closing cash adjustment under the separation agreement with ADI, with that repayment expected by the end of the third fiscal quarter.

Both companies said the separation positions them to pursue their respective strategic priorities as standalone organizations while focusing on their individual markets and long-term growth objectives.