Resideo and Southwire Announce Agreement Related To The Sale Of Resideo's Genesis Cable Business; The Transaction Is Valued At ~$87.5M
Portfolio Pulse from Benzinga Newsdesk
Resideo Technologies (NYSE:REZI) has announced a definitive agreement to sell its Genesis Cable business to Southwire Company for approximately $87.5 million. The transaction is expected to close within the next 30 days. The sale is part of Resideo's strategy to optimize its product portfolio and focus on long-term strategy and margin goals. The transaction is expected to have minimal impact on Resideo's Q4 2023 operating income and be immediately accretive to Products & Solutions gross and operating margin. Resideo plans to use the proceeds for ongoing investment and to support capital return to shareholders through a share repurchase program.
September 19, 2023 | 12:37 pm
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Resideo's sale of its Genesis Cable business to Southwire Company for $87.5M is part of its strategy to optimize its product portfolio. The transaction is expected to have minimal impact on Resideo's Q4 2023 operating income and be immediately accretive to Products & Solutions gross and operating margin.
The sale of Genesis Cable business is a strategic move by Resideo to optimize its product portfolio and focus on long-term strategy and margin goals. This could be seen as a positive move by investors, potentially leading to a short-term increase in the stock price. The transaction is also expected to be immediately accretive to Products & Solutions gross and operating margin, which could further boost investor confidence.
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