Resideo and Southwire Announce Agreement Related to the Sale of Resideo's Genesis Cable Business
PRNewswire 19-Sep-2023 8:30 AM
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.
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.
