Resideo Acquires First Alert Inc.
Resideo Technologies, a global provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products, announced it will acquire First Alert, a provider of home safety products, from Newell Brands Inc. for $593 million in an all cash transaction, or approximately $547 million net of expected future tax benefits.
Established in 1969 and based in Aurora, Ill., First Alert is a leader in the home safety market with an omni-channel presence serving end users directly through retail and e-commerce channels and professional contractors through relationships with distributors and homebuilders. First Alert offers a portfolio of detection and suppression devices including smoke alarms, carbon monoxide (CO) alarms, combination alarms, connected fire and CO devices, and fire extinguishers and other suppression solutions. Products are marketed through the First Alert, BRK and Onelink brands.
“The addition of First Alert to the Resideo portfolio provides a highly complementary extension of our existing sensor solutions in the home,” said Jay Geldmacher, Resideo CEO. “Not only does First Alert bring a leading brand and market position in home safety, but its products also occupy a highly strategic position on the ceiling. 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. First Alert advances our strategy of expanding Resideo's presence with contractors and broadening our suite of sensors for the home.”
For 2021, First Alert generated approximately $395 million of sales and adjusted EBITDA of approximately $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.
The transaction is expected to be completed in the first quarter of 2022, and is subject to customary closing conditions, including receipt of applicable regulatory approvals.
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