To understand the roots of what is Resideo and ADI Global Distribution we need to go to its origins, a New York-based hardware store called the Alarm Device Manufacturing Company, or ADEMCO, founded in 1929, and which went public in 1960. Throughout the 1980s, ADEMCO acquired other companies, forming ADEMCO Distribution and, in 1987, ADEMCO Distribution was renamed ADI.
Honeywell acquired ADI in 2000 to expand its footprint in home and building control and continued to grow the business with more acquisitions. In 2018, Honeywell spun off ADI, along with its home heating, ventilation, air conditioning controls and security manufacturing businesses into Resideo Technologies Inc.
The group that now owns the Honeywell Home brand and a strong portfolio of security products and services, maintains ADI Global Distribution as its division selling security, audiovisual and low-voltage products to the systems integration markets in North America, Europe and the Middle East. And ADI is precisely where Resideo intends to merge all the current brands and business that are now part of Snap One. The goal is to reinforce its position in the residential and commercial markets, creating omni-channel opportunities for integrators. The innovative Control4 technology platforms should contribute the bulk of the expected growth for ADI in those markets, expanding with further integration of security applications and systems, Resideo's area of expertise.
"The acquisition of Snap One is an exciting step in Resideo's continued transformation through portfolio optimization, operational enhancements and structural cost savings actions," confirms Jay Geldmacher, Resideo's President and Chief Executive Officer.
"Snap One has grown from a startup built by entrepreneurial integrators to an industry leader in smart technology, delivering seamless experiences to consumers and high-quality services and support to our integrators," says John Heyman, Chief Executive Officer of Snap One. "This is the right next step to capture new opportunities to bring our solutions to market. The future of smart living is here. Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion. We believe this transaction will deliver compelling value to our stakeholders and will create opportunities for our people and integrator partners."
The acquisition will combine Snap One's capabilities residential and commercial systems integrators with ADI's complementary position in adjacent security products distribution. As the acquisition announcement confirms, "The combination is expected to meaningfully accelerate ADI's existing exclusive brands strategy, leveraging Snap One's award-winning proprietary product portfolio and product development expertise while providing broader availability through ADI's network of commercial and residential integrators and omni-channel capabilities."
The transaction - unanimously approved by the Boards of Directors of Resideo and Snap One - is expected to be completed in the second half of 2024, and is subject to customary closing conditions, including receipt of applicable antitrust and other regulatory approvals.
www.resideo.com
www.snapone.com
www.adiglobal.com
