Honeywell spinoff Resideo Technologies is now trading on the New York Stock Exchange and will move its headquarters from Minneapolis to Austin, Texas, the company said Tuesday.
Minneapolis has a new public company in Honeywell spinoff — for now
Resideo Technologies is on the NYSE and will move its headquarters to Austin.
October 31, 2018 at 12:23AM
Honeywell officially spun off its homes and global distribution businesses on Monday. Resideo is now trading on the stock exchange under the symbol REZI. It has so far had a rough time, starting trading on Monday at $28 and ending Tuesday down 8 percent to $25.82.
Resideo said its future headquarters in Austin will employ roughly 100 employees.
Honeywell has had about 3,700 employees in Minnesota, including about 1,700 in Golden Valley, where the company has traditionally run its homes and building controls automation business and has made energy-efficiency and automated-temperature controls that are used in 150 million homes and by more than 10 million commercial customers.
Going forward, Resideo will run the homes business. It will have about 14,500 employees worldwide, including about 700 Minnesota workers who are mostly in Golden Valley.
"It's also worth noting that we are hiring for 35 open positions in Golden Valley," said Resideo spokesman Trent Perrotto on Tuesday.
The company plans to move the headquarters to Austin in early 2019.
Perrotto said previously that the Twin Cities will continue to be an important location for both Honeywell and Resideo. The spinoff now owns the Golden Valley facility, but Honeywell will continue to maintain a presence at that site.
Honeywell is expected to retain about 2,681 employees in Minnesota — including about 800 in Golden Valley, said Honeywell spokesman Scott Sayres.
Honeywell's Minnesota employees will continue to work in various businesses here such as defense, aerospace, performance materials technologies and other divisions that now have operations in Bloomington, Minneapolis, Plymouth, Coon Rapids and Golden Valley, Sayres said.
Honeywell will license its brand to Resideo under a long-term agreement for use in its home comfort and security hardware, and software for all divisions. Former Hewlett Packard Enterprise executive Mike Nefkens is Resideo's CEO.
"The spinoff of Resideo marks the completion of the portfolio transformation that we initiated last year, leaving us in an even stronger position with a more focused and growth-oriented portfolio and industry-leading businesses across attractive end markets," Honeywell CEO Darius Adamczyk said in a statement. "Our simplified portfolio offers multiple levers to drive organic growth and continued margin expansion, augmented by a vigorous and disciplined M&A strategy that will continue to generate tremendous value for customers and share owners."
Resideo is the second spinoff Honeywell completed this year. The other new company is Garrett Motion Inc., Honeywell's former transportation systems business. That deal was completed on Oct. 1.
Honeywell first announced the Resideo spinoff a year ago.
Resideo will provide home-comfort and security products for homes. Its ADI Global Distribution business will continue to be a wholesale distributor of security and low-voltage products.
Under the terms of the spinoff, Honeywell distributed one share of Resideo common stock for every six shares of Honeywell common stock shareholders held as of 4 p.m. on Oct. 16.
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