Honeywell will spin off its home business and ADI global distribution business into one independent company, which will be named as Resideo. The spin is expected to be completed by the end of 2018.
Honeywell will license its brand to Resideo under a long-term agreement for use in its home comfort and security hardware, and software solutions for all channels.
“The home is the biggest investment most of us will ever make – the place where we create a lifetime of memories,” said Mike Nefkens, the president and CEO of Honeywell Homes, the business that will become Resideo, in a statement.
“Resideo builds on Honeywell’s strength in providing the world’s best solutions to help people to live more productive, comfortable and safer lives. And because smart home choices can be truly overwhelming, our mission is to provide consumers with integrated, simple solutions for today’s connected home.”
Resideo will benefit from the current Honeywell Home network, which includes more than 110,000 contractors who contribute to Resideo’s sales and marketing strategies, 3,000 distributors and 1,200 original equipment manufacturers (OEMs), major retailers and online merchants.
According to Honeywell, more than 4.7 million customers are using Honeywell Home connected devices in their homes, which will later also become Resideo’s property. The new company expects to have 30 million installed sensors generating more than 250 billion data transmissions every year.
“Resideo has several distinct advantages: a pipeline of innovative products and services, a sharp focus on its customers and global scale with a world-class brand,” said Roger Fradin, the chairman of the Board of Resideo.
The ADI Global Distribution, which is spun off from Honeywell and will become part of Resideo, remains a free-standing business and offers 350,000 products to 100,000 contractors. The business has more than 200 physical locations in nealy 20 countries.
According to Honeywell, the Resideo name reflects the strength of home, a “fortress” where homeowners protect the people and things they love.