Resideo Technologies (NYSE: REZI) announced a definitive agreement to sell Genesis Cable, a low-voltage wire and cable manufacturer based in Pleasant Prairie, Wisc., to Southwire Co. for approximately $87.5 million. 

“The sale of Genesis is an exciting step in our ongoing work to optimize our product portfolio by divesting a non-core asset and sharpening our focus on our long-term strategy and margin goals,” stated Jay Geldmacher, Resideo’s president and CEO. “We are pleased with the value realized for this non-strategic asset and we continue to explore value creation opportunities across our Products & Solutions portfolio.” 

Geldmacher went on to say the “strong partnership” between Genesis and Resideo’s ADI Global Distribution business will continue. 

Rich Stinson, Southwire’s president and CEO, said, “The strong brand and quality reputation Genesis has built over the last three decades is a perfect fit for Southwire and our focus on innovation, service and quality. Their product offering provides an opportunity to share our innovative solutions with even more customers, positioning us for success both now and in the future.”  

Genesis is a leading U.S. low-voltage cable manufacturer, providing critical connection for a wide range of residential and commercial applications including comfort, security, network and communications, entertainment, and fire and safety. With 187 employees, the company manufactures approximately 70 percent of its products in-house and serves a broad set of distributor, dealer and professional contractor customers. 

The transaction is subject to customary closing conditions and is anticipated to close in the next 30 days. The deal is expected to have minimal impact on Resideo’s fourth quarter 2023 operating income and is expected to be immediately accretive to Products & Solutions gross and operating margin. 

Resideo expects to use the net proceeds from the transaction for ongoing organic and inorganic investment and to support capital return to shareholders through the recently announced share repurchase program.