Honeywell Completes Spinoff of Resideo Technology, Looks to Move Its HQ Out of Golden Valley
Resideo Technology – originally the Homes and ADI Global Distribution arm of Honeywell – stepped out on its own Monday with the completion of its spinoff from Honeywell.
Honeywell CEO and chairman Darius Adamczyk said in a statement that the move is the final step in a portfolio transformation initiated last year by the company. Honeywell is known for its broad portfolio of industrial and safety supplies, as well as home security, heating and cooling products.
“Our simplified portfolio offers multiple levers to drive organic growth and continued margin expansion…” said Adamczyk. “We remain committed to delivering outstanding returns for our shareowners, backed by a best-in-class balance sheet… and a wide range of innovative, technologically advanced products, services and software that addresses the growing needs of our diverse customer base.”
Resideo, which will use the Honeywell Home brand under a long-term and exclusive license, focuses on providing comfort and security solutions primarily for residences. The spinoff company claims to already be present in over 150 million homes worldwide. Additionaly, its ADI Global Distribution component is billed as the leading wholesale distributor of security and low-voltage products on the planet.
In the meantime, Resideo is currently on the hunt for a new headquarters. A recent filing with the Securities and Exchange Commission reveals the company is looking at Austin, Texas. At the moment, Resideo is headquartered in Golden Valley.
Likewise, former parent company Honeywell was for decades based in Minnesota. However, after being acquired by AlliedSignal in 1999, its home base shifted to Morris Plains, New Jersey. Despite the relocation, Honeywell still maintains a significant presence in Minnesota. A company spokesperson tells TCB that Honeywell today employs about 2,680 people statewide.
The Resideo spinoff completion comes less than a month after the completion of Honeywell’s other planned spinoff that transformed its transportation business into Garrett Motion Inc. Combined, the moves involve the jettisoning of $7.5 billion of Honeywell’s overall business, as TCB reported last year.
“The remaining Honeywell portfolio will consist of high-growth businesses in six attractive industrial markets,” Adamczyk told TCB, in reference to the company’s core portfolio groups of oil, gas and petrochemicals; commercial buildings; defense; industrial productivity; specialty chemicals; and aerospace.
The Garret Motion Inc. spinoff was completed October 1. Resideo’s “regular way” stock trading opened at 12:01 a.m. Tuesday.