SCOTTSDALE, Ariz., Sept. 19,
2023 /PRNewswire/ -- Resideo Technologies, Inc.
(NYSE: REZI) announced today a definitive agreement for the sale to
Southwire Company, LLC of its Genesis
Cable business, a leading low-voltage wire and cable
manufacturer based in Pleasant Prairie,
WI. The transaction is valued at approximately $87.5 million, subject to customary closing
conditions and is anticipated to close in the next 30 days.
"The sale of Genesis is an exciting step in our ongoing work to
optimize our product portfolio by divesting a non-core asset and
sharpening our focus on our long-term strategy and margin goals,"
commented Jay Geldmacher, Resideo's
President and CEO. "We are pleased with the value realized for this
non-strategic asset and we continue to explore value creation
opportunities across our Products & Solutions portfolio."
"This is also an exciting opportunity for the Genesis team, who
will join a well-recognized industry leader in Southwire. We look
forward to continuing the strong partnership between Genesis and
our ADI Global Distribution business and the opportunity to expand
our relationship with Southwire."
"We are excited to welcome the Genesis team to Southwire," said
Rich Stinson, Southwire's President
and CEO. "The strong brand and quality reputation Genesis has built
over the last three decades is a perfect fit for Southwire and our
focus on innovation, service and quality. Their product offering
provides an opportunity to share our innovative solutions with even
more customers, positioning us for success both now and in the
future."
Genesis is a leading U.S. low-voltage cable manufacturer,
providing critical connection for a wide range of residential and
commercial applications including comfort, security, network and
communications, entertainment, and fire and safety. With 187
employees and manufacturing in Pleasant
Prairie, WI, Genesis manufactures approximately 70% of its
products in-house and serves a broad set of distributor, dealer,
and professional contractor customers.
The transaction is expected to have minimal impact on Resideo's
fourth quarter 2023 operating income and is expected to be
immediately accretive to Products & Solutions gross and
operating margin. Resideo expects to use the net proceeds from the
transaction for ongoing organic and inorganic investment and to
support capital return to shareholders through the recently
announced share repurchase program.
About Resideo
Resideo is a leading global manufacturer and developer of
technology-driven products and components that provide critical
comfort, energy management, and safety and security solutions to
over 150 million homes globally. Through our ADI Global
Distribution business, we are also a leading wholesale distributor
of low-voltage security and life safety products for commercial and
residential markets and serve a variety of adjacent product
categories including audio visual, data com, wire and cable, and
smart home solutions. For more information about Resideo, please
visit www.resideo.com.
About Southwire
A leader in technology and innovation, Southwire Company, LLC is
one of North America's largest
wire and cable producers and an emerging influence in the
industrial electrical space. Southwire and its subsidiaries
manufacture building wire and cable, utility
products, metal-clad cable, portable and electronic cord
products, OEM wire products and engineered products. In addition,
Southwire supplies assembled products, contractor equipment and
hand tools. For more on Southwire's products, its community
involvement, and its vision of sustainability,
visit www.southwire.com.
Resideo Contacts:
|
|
Investors:
|
Media:
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Jason Willey
|
Garrett
Terry
|
Vice President,
Investor Relations
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Corporate
Communications Manager
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investorrelations@resideo.com
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garrett.terry@resideo.com
|
Southwire Contacts:
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Executive:
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Media:
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Norman Adkins
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Ashley Bush
|
COO
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Director,
Communications
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Norman.Adkins@Southwire.com
|
Ashley.Bush@Southwire.com
|
Forward-Looking Statements
This release contains "forward-looking statements." All
statements, other than statements of fact, that address activities,
events or developments that we or our management intend, expect,
project, believe or anticipate will or may occur in the future are
forward-looking statements. Although we believe forward-looking
statements are based upon reasonable assumptions, such statements
involve known and unknown risks and uncertainties, which may cause
the actual results or performance of the company to differ
materially from such forward-looking statements. Such risks and
uncertainties include, but are not limited to, (1) whether the sale
of Genesis will be consummated and the timing thereof, (2) our
ability to optimize our product portfolio, execute on our long term
strategy, achieve our margin goals, and the anticipated use of
proceeds from the transaction, and (3) the other risks described
under the headings "Risk Factors" and "Cautionary Statement
Concerning Forward-Looking Statements" in our Annual Report on Form
10-K for the year ended December 31,
2022 and other periodic filings we make from time to time
with the Securities and Exchange Commission. Forward-looking
statements are not guarantees of future performance, and actual
results, developments, and business decisions may differ from those
envisaged by our forward-looking statements. Except as required by
law, we undertake no obligation to update such statements to
reflect events or circumstances arising after the date of this
press release and we caution investors not to place undue reliance
on any such forward looking statements.
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SOURCE Resideo Technologies, Inc.