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Resideo Technologies Announces Spin-off of ADI Global Distribution

In a significant strategic move, Resideo Technologies, Inc. has disclosed its plan to spin off its ADI Global Distribution division, marking a pivotal moment for the company and its shareholders. The Board of Directors has set critical dates in relation to the spin-off process, which aims to separate ADI into an independent entity.

Key Dates to Note

The record date for this spin-off is established as July 20, 2026. This means that shareholders holding common shares of Resideo on this date will become eligible for the spin-off benefits. Following this, the actual distribution is slated to take place on August 3, 2026.

Upon distribution, Resideo common shareholders will receive one share of ADI common stock for every two shares of Resideo stock they hold. This pro-rata distribution method ensures that all eligible shareholders have a stake in the newly formed company. Additionally, ADI is forecasted to commence trading on the New York Stock Exchange (NYSE) under the ticker symbol "ADIG" as of August 4, 2026.

Financial Backing and Trading Framework

In preparation for this separation, ADI has secured a significant financial package. This includes the completion of a $400 million offering of senior notes as well as a $600 million term loan facility and a $500 million revolving credit facility. These funds are intended to bolster ADI's operations post-spin-off and ensure it has adequate liquidity as it embarks on its journey as an independent entity.

For current Resideo shareholders, the implications of the spin-off extend to their trading activities on the NYSE. Prior to the distribution date, there will be a 'when-issued' trading segment with ticker "ADIG WI" expected to launch around July 29, 2026, enabling investors to trade shares of ADI before its official market debut. Resideo shares will continue to trade with ticker symbol "REZI" until the distribution date, but will also be available under an ex-distribution market as "REZI WI" after the split is determined.

Shareholder Guidance

Investors are advised to consider consulting with their financial advisors regarding the impact of these changes on their portfolios. Notably, no action is required from Resideo shareholders in order to receive their shares of ADI stock; these will be issued automatically. An information statement detailing the distribution will be circulated to shareholders around the record date, providing comprehensive insights into the process.

Upcoming Investor Events

Both Resideo and ADI are scheduled to conduct Investor Days in New York City on July 13 and 14, 2026, respectively. These events are anticipated to shed light on the operational capabilities of both firms and highlight their long-term strategies. Presentations will include discussions on financial outlooks and product showcases, keeping investors well-informed of the companies' directions.

In summary, the spin-off of ADI from Resideo signifies an exciting chapter for both companies, with numerous opportunities for growth and refinement in how they reach their respective markets. As the clock counts down to the record date and distribution, shareholders remain poised to benefit from this strategic maneuver. With the backing of financial instruments and a clear plan for trading, ADI is set to emerge as a strong standalone entity.

About Resideo and ADI

Resideo is globally recognized for its extensive range of technology-driven products, primarily for heating, ventilation, and air conditioning systems, as well as safety and security solutions. ADI, on the other hand, stands as a specialty distributor for low-voltage products and has established a strong market presence within the security and audio-visual segments. The separation of these interests is aimed at enhancing operational focus and driving growth for both organizations in their respective fields.