Resideo on Monday announced that it has entered into an agreement to acquire fire and life safety solutions manufacturer First Alert, Inc. from Newell Brands for $593 million in an all-cash transaction.
In a statement, Resideo said the acquisition would enable them to not only expand their footprint in the home with complementary fire and carbon monoxide detection products, but also enhance their presence across retail and professionals channels.
Founded in 1969 and based in Aurora, Ill., First Alert offers a comprehensive portfolio of detection and suppression devices including smoke alarms, carbon monoxide (CO) alarms, combination alarms, connected fire and CO devices, and fire extinguishers and other suppression solutions. The company’s products are marketed through the First Alert, BRK and Onelink brands.
First Alert employs more than 2,800 workers and its operations footprint includes manufacturing in Juarez, Mexico, and a primary distribution facility in El Paso, Texas. Last year, the company generated approximately $395 million of sales and adjusted EBITDA of approximately $55 million.
"The addition of First Alert to the Resideo portfolio provides a highly complementary extension of our existing sensor solutions in the home," Resideo CEO Jay Geldmacher said in the statement. "Not only does First Alert bring a leading brand and market position in home safety, but its products also occupy a highly strategic position on the ceiling. We see significant operational synergies with First Alert's strength in retail and relationships with leading homebuilders and Resideo's strong partnership with professional contractors and distributors. First Alert advances our strategy of expanding Resideo's presence with contractors and broadening our suite of sensors for the home."
The transaction is expected to be completed in the first quarter of 2022 and is subject to customary closing conditions and regulatory approvals.
