ADI Global Distribution Posts Spin Reset Amid ERP Transition and Cost-Cutting Push

ADI Global Distribution (ADIG), spun from Resideo in August 2024, is positioning itself for a post-spin reset with a focus on operational efficiency, cost savings, and strategic acquisitions. The company, which recorded $4.88 billion in revenue over the past year, is targeting annual run-rate savings of more than $80 million by the end of 2027 through a series of structural changes, including reducing distribution centers from 15 to 9 and store locations from about 140 to 115. ERP system consolidation—down from 16 systems to a single platform by early 2028—is expected to generate roughly $60 million in revenue recovery after a $60 million hit in the second half of 2025 due to service disruptions. The company also streamlined its e-commerce platforms from three to one and rationalized exclusive brands from 22 to 12, reflecting broader efforts to simplify operations amid a mid-2026 cap on transformational M&A due to tax restrictions tied to the spin from Resideo.