International. Resideo Technologies announced that it has completed the acquisition of Snap One, a provider of smart living products, services and software for professional integrators.
In this way, Resideo will integrate Snap One into its ADI Global Distribution segment. Together, ADI and Snap One will provide integrators with a greater selection of third-party products and proprietary offerings through an extensive physical branch presence augmented by industry-leading digital capabilities.
As previously communicated, the all-cash transaction was for $10.75 per share of Snap One common stock, or a total transaction value of approximately $1.4 billion, including Snap One's net debt at closing.
"We are thrilled to complete this transaction and excited to officially welcome the Snap One team to Resideo," said Jay Geldmacher, President and CEO of Resideo. "This is an important step in our ongoing transformation at Resideo as we focus on accelerating profitable growth. Snap One's expertise serving smart life integrators and innovative Control 4 and home automation offerings immediately expand Resideo's capabilities in the security, visual audio, and smart living markets. The combination better positions the business in attractive growth categories, adds new, higher-margin proprietary products and services, and expands ADI's customer base. ADI's future is bright as we work to simplify the connected world, creating value for our customers and shareholders."
The executive also indicated that Resideo continues to expect commercial and financial synergies of annual execution rate of approximately $75 million by 2027. The transaction is expected to accrete to full-year 2025 adjusted earnings per share as a result of favorable revenue growth and an improved margin profile for ADI and the company as a whole. Resideo intends to update its 2024 annual outlook to reflect the acquisition during its second-quarter earnings call in early August.
In connection with the closing of the Snap One transaction, investment funds managed by Clayton, Dubilier & Rice LLC affiliates completed their $500 million convertible preferred stock investment in Resideo. Beginning with the closing, CD&R partners Nate Sleeper and John Stroup joined Resideo's board of directors. Both bring significant experience in the specialist distribution and construction products markets.
Sleeper has worked at CD&R since 2000 and has served as CEO since January 2020. Prior to joining CD&R, he worked in the investment banking division of Goldman Sachs & Co. Stroup became a partner at CD&R in 2024. having worked as an operational advisor since 2021. Prior to this, Stroup served as President and Chief Executive Officer of Belden, Inc. from 2005 to 2020 and as President of Belden from 2016 to 2020.
Leave your comment