- Resideo Technologies Inc (NYSE:REZI) has agreed to acquire First Alert Inc, a home safety products provider, from Newell Brands Inc (NASDAQ:NWL) for $593 million in an all-cash transaction.
- First Alert offers a portfolio of detection and suppression devices, including smoke alarms, carbon monoxide (CO) alarms, combination alarms, connected fire, and CO devices.
- For the year ended December 31, 2021, First Alert generated $395 million of sales and adjusted EBITDA of $55 million.
- First Alert has over 2,800 employees, and its operations include manufacturing in Juarez, Mexico, and a primary distribution facility in El Paso, Texas.
- "We see significant operational synergies with First Alert's strength in retail and relationships with leading homebuilders and Resideo's strong partnership with professional contractors and distributors," said CEO Jay Geldmacher.
- Resideo Technologies expects to complete the transaction in the first quarter of 2022.
- The company held $686 million in cash and equivalents as of October 2, 2021.
- Preliminary Results: Resideo Technologies expects Q4 sales of $1.454 billion (prior view $1.44 billion - $1.49 billion), below the consensus of $1.47 billion.
- The company expects Q4 gross margin of 27.2% (prior view 27% - 28%) and operating profit of $141 million (previous view $140 million - $150 million).
- Price Action: REZI shares are trading lower by 0.09% at $23.34, and NWL higher by 1.31% at $21.61 on the last check Monday.
