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

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Event-Driven

<ul>
<li>Resideo's Board approved the ADI Global Distribution spin-off; record date July 20, distribution August 3, with one ADI share for every two REZI shares. ADI trades regular-way August 4.</li>
<li>We value Resideo (ex ADI) at $35.00/share and ADI at $25.00/share, implying combined fair value of $47.50, 53% upside</li>
<li>Key risks: ADI's thin distribution margins face freight/fuel inflation, ~$1.0B new debt, and $23M standalone costs. Investor Days on July 13–14 are the near-term re-rating catalyst</li>
</ul>


Resideo's Board approved the ADI Global Distribution spin-off; record date July 20, distribution August 3, with one ADI share for every two REZI shares. ADI trades regular-way August 4.
We value Resideo (ex ADI) at $35.00/share and ADI at $25.00/share, implying combined fair value of $47.50, 53% upside
Key risks: ADI's thin distribution margins face freight/fuel inflation, ~$1.0B new debt, and $23M standalone costs. Investor Days on July 13–14 are the near-term re-rating catalyst


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

Resideo Technologies Inc

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