RESIDEO ACQUIRES AUDIO-VISUAL EQUIPMENT DISTRIBUTOR HERMAN PROAV
Acquisition will further enhance the growing pro-AV business within ADI Global Distribution and related overall gross margin expansion
AUSTIN, Texas, Feb. 10, 2020 – Resideo Technologies, Inc. (NYSE: REZI) today announced it has acquired privately held Herman ProAV, based in Miramar, Fla. The newly acquired company is a leading provider and distributor of professional audio-visual (AV) products, procurement services and labor resources to systems integrators in the commercial audio-visual industry. Herman ProAV serves customers across the United States and will be part of Resideo’s ADI Global Distribution business, a leading wholesale distributor of security, AV and low-voltage products.
“ADI is a cornerstone of Resideo’s growth and continues to expand its presence as the global leader in low voltage security and audio-visual distribution,” said Mike Nefkens, president and CEO of Resideo. “Herman’s product offering and compelling services model are perfectly aligned with ADI, and this acquisition will help us reach new customers across the pro-AV market. This is an important acquisition for our distribution business as part of our ongoing strategic initiative to identify and execute on investments that accelerate topline growth and expand margins.”
AVIXA™, the Audiovisual and Integrated Experience Association, predicts the pro-AV market in the Americas will grow to more than $112 billion in 2024, from $89 billion in 2019. The Herman ProAV acquisition builds upon ADI’s product portfolio and expands its presence in the pro-AV market. In addition to top-tier professional AV products, the acquisition includes Herman Integration Services which provides AV systems integrators with trained and industry-certified technicians, project managers, programmers and engineers.
“ADI already has a strong and growing presence in the pro-AV market, and with the addition of Herman’s deep industry experience and subcontracting services, we will be able to offer our customers compelling opportunities to grow and make ADI their indispensable partner of choice,” said Rob Aarnes, president of Resideo’s ADI Global Distribution business. “We are always looking for ways to help our customers grow their businesses, and with this acquisition, we’re helping them to expand into new product categories and services, and capitalize on the fast-growing professional AV segment.”
“We are extremely excited about joining the ADI family. This is a momentous day in our proud 56-year history and represents the start of the next great chapter for our organization. I am incredibly proud of all that we have achieved over the years for our employees, customers, suppliers and the industry overall, and we are extremely enthusiastic to leverage ADI’s resources and world class capabilities to propel our offerings and deliver greater value to the pro-AV industry,” said Jeffrey Wolf, general manager, Herman ProAV now part of ADI Global Distribution.
“We could not think of a better organization than ADI to help us deliver next level value and service to the AV industry. Our focus has always been to bring tangible efficiencies and cost saving opportunities to our integrator partners through our procurement and labor services. And with the significant resources and best-in-class infrastructure of ADI, there is no doubt that we will be able to deliver even more value to an exponentially greater number of integrators,” said David Wolf, general manager, Herman ProAV now part of ADI Global Distribution.
Resideo is a leading global provider of critical comfort and security solutions primarily in residential environments and distributor of low-voltage electronic and security products. Building on a 130-year heritage, Resideo has a presence in more than 150 million homes, with 15 million systems installed in homes each year. We continue to serve more than 110,000 contractors through leading distributors, including our ADI Global Distribution, which exports to more than 100 countries from more than 200 stocking locations around the world. Resideo is a $4.8 billion company with approximately 13,000 global employees. For more information about Resideo, please visit www.resideo.com.
This release contains “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, those described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended Dec. 31, 2018 filed with the Securities and Exchange Commission (“SEC”). You are cautioned not to place undue reliance on these forward-looking statements, such as our ability to improve gross margin expansion of and growth in our Pro AV business, each of which speak only as of the date of this release. Forward looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements.