Setting the course for the Dutch security and distribution market

With the announcement of the spin-off of ADI Global Distribution, Resideo Technologies made a strategic decision at the end of July 2025 that is likely to have far-reaching implications for the security and distribution market in the Netherlands. The global technology company will spin off its distribution division as an independent, publicly traded company in the course of 2026. Resideo’s goal is to increase enterprise value, improve operational efficiency and enable both organisations to gain greater strategic flexibility.

This decision comes at a time when the market for security and building technology – especially in the Netherlands – is characterised by growing demands for energy efficiency, digitalisation and physical security. For the industry, especially specialist installers, system integrators and wholesalers, Resideo’s restructuring could herald a significant market shift.

Resideo’s realignment – focus on smart home technology

Once the spin-off is complete, Resideo will focus on its core business of technology-driven solutions for residential comfort, energy efficiency and home security. With established brands such as Honeywell Home, First Alert and Braukmann, as well as a network of around 100,000 installation partners, the company remains an important player in Europe – including in the Netherlands, where smart home technologies and energy-optimised building automation are experiencing strong growth in demand.

The Products & Solutions (P&S) business unit, to which these brands belong, generated revenue of 2.6 billion US dollars in the period to the end of March 2025, with an impressive EBITDA margin of 24.2 per cent. The high profitability indicates a strong market position and operational excellence, which Resideo intends to expand in a more focused manner in the future.

ADI Global Distribution – Independent distributor for security technology

However, even more exciting for the Dutch market is the planned spin-off of ADI Global Distribution, one of the world’s leading distributors of security, video surveillance and AV systems.

With over 500,000 products in its range, including exclusive brands such as Control4 and WattBox, ADI has also established itself as a major player in the Benelux region.

In the 2024/2025 period under review, ADI generated revenue of 4.5 billion US dollars with an EBITDA margin of 7.5 percent. The company’s independent position opens up new strategic options for expansion, particularly in the European single market. For Dutch security retailers, this will potentially result in a more competitive environment, but also new opportunities through a more specialised offering and more direct partnerships.

The new company will be headed by Rob Aarnes, an industry expert with many years of experience in distribution and security. His leadership role underscores ADI’s commitment to becoming more agile, customer-focused and independent in the future.

The Netherlands as a focus market for distribution and smart security

The Dutch market, which has traditionally been technology-savvy and open to new distribution models, could benefit directly from this structural change. The region is already a pioneer in the implementation of smart building technologies and integrated building security. In this environment, ADI will be able to operate with greater strategic flexibility as a specialised distributor – whether through targeted product range adjustments, the expansion of logistics capacities or the introduction of new digital customer platforms.

At the same time, Dutch system houses, installers and specialist installers will have a much more focused point of contact with a clear profile: the new, independent ADI Group should be able to respond more specifically to regional market needs and align its supply chain with the growing demand for security technology, AV solutions and network products.

Financial relief and strategic clarity

In parallel with the split, Resideo also announced that it had reached a comprehensive agreement with Honeywell International: For a one-time payment of $1.59 billion, Resideo will prepay all remaining obligations under a prior damage settlement agreement with Honeywell. The agreement ends annual payment obligations through 2043 and significantly improves the balance sheet structure. According to CEO Jay Geldmacher, who is stepping down following the separation from ADI, this move significantly increases strategic and financial flexibility for the remaining Resideo core business.

The short-term business outlook also appears stable: Resideo expects second-quarter 2025 revenue to exceed its original guidance of over $1.85 billion and earnings per share to exceed market consensus.

Outlook: Two specialised players in two growth areas

The planned split of Resideo and ADI Global Distribution is a strategically sound separation of two different business models – technology development on the one hand and distribution expertise on the other. For the Netherlands, where both areas are highly relevant, this could provide impetus that strengthens both the innovative capacity of smart home and energy management systems and the market breadth in the distribution segment.

The implementation of the split is still subject to approval by the Resideo Board of Directors and the regulatory authorities. If it goes ahead as planned in the second half of 2026, Dutch market participants can look forward to two independent, more focused partners with ambitious goals.

For the Dutch security market, the spin-off of ADI Global Distribution marks a turning point – and an opportunity. While Resideo will increasingly position itself as a technology provider in the future, ADI will emerge as a specialised distributor that is likely to set new trends, particularly in the European and Dutch markets. Installers, system integrators and planners in the Netherlands should follow this development closely – it could enable new partnerships, product portfolios and sales strategies in the long term.

Source: Based on a report by Beveiligingnieuws.nl, published on 30 July 2025: Resideo splits off ADI Global Distribution