- Resideo Technologies Inc REZI has agreed to acquire First Alert Inc, a home safety products provider, from Newell Brands Inc 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in