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GSBR Research

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Resideo to Spin-Off ADI Global on August 3; Initiate Standalone Fair Value Estimates

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Event-Driven

<ul>
<li>Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)</li>
<li>ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.</li>
<li>Our SOTP valuation of $46.50 implies roughly 49% upside to REZI's current price, highlighting the potential for value unlock via the spin-off.</li>
</ul>


Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)
ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.
Our SOTP valuation of $46.50 implies roughly 49% upside to REZI's current price, highlighting the potential for value unlock via the spin-off.


Resideo/ADI Global Distribution Spin-Off: The Sum Is Worth More Than The Parts

Resideo Technologies Inc

Resideo/ADI Global Distribution Spin-Off: The Sum Is Worth More Than The Parts