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Thursday, July 26, 2018

Honeywell spins out its homes business into Resideo

By Nick Flaherty

Honeywell is spinning out its Honeywell Homes business into a $4.5bn separate venture called Resideo. This will also include the ADI global distribution businesses by the end of 2018, creating a significant new player in the Internet of Things (IoT).

Honeywell will license its brand to Resideo under a long-term agreement for use in its home and security hardware and software solutions for all channels.

Honeywell has had the potential to be a major player in the consumer IoT but has struggled to define a strategy, hence the spin out into a company that sounds somewhat like 'residual', or left over. It already has 30 million installed sensors generating more than 250 billion data transmissions each year. The Connected Home operation uses Microsoft Azure cloud services.

Honeywell Home and Building Technologies (HBT) has over 38,000 employees with products, software and technologies found in more than 150 million homes and 10 million buildings worldwide. Resideo will have approximately 13,000 staff. 

The Resideo network also includes more than 3,000 distributors and 1,200 original equipment manufacturers (OEMs), major retailers and online merchants. More than 4.7 million of Resideo's customers use connected devices in their homes, which provide them app-based access to controls, monitoring and alerts.  

The network also includes more than 110,000 contractors, who are an integral part of Resideo's sales and go-to-market strategies. As an independent company, Resideo will support their growth by investing in sales and technical training, improving channel partner marketing and related programs to enhance their ability to meet the needs of homeowners.

The ADI Global Distribution business has more than 200 physical locations in nearly 20 countries, offering more than 350,000 products to more than 100,000 contractors. ADI Global Distribution will retain its name and remain as a free-standing distribution business of Resideo, allowing its global low-voltage contractors to access the products and technologies they need to meet the needs of their customers.

"The home is the biggest investment most of us will ever make – the place where we create a lifetime of memories," said Mike Nefkens, president and CEO of Honeywell Homes, the business that will become Resideo. "Because the home is a centerpiece of our lives, we expect it to be secure, comfortable and safe at all times. 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."

"Through its iconic brand and unparalleled presence in the home and low-voltage product distribution markets, Resideo will have an enviable position from its first day," said Roger Fradin, chairman of the Board, Resideo, who has four decades of leadership experience in the home comfort and security industries. "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. Given its ability to serve a wide range of customers around the world, Resideo is poised to be the preferred choice for consumers and channel partners, and a very compelling investment for shareowners."

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