Resideo Technologies, Inc. announced the completion of its transaction with Honeywell International Inc. to accelerate and eliminate all future monetary obligations under the Indemnification and Reimbursement Agreement. This agreement, originally entered into in 2018, had obligated Resideo to make annual payments to Honeywell.
In connection with the completion, Resideo made a one-time cash payment of $1.59 billion to Honeywell. This payment results in the termination of the Indemnification Agreement, effectively removing Resideo's obligation to make annual payments of up to $140 million through year-end 2043. All affirmative and negative covenants contained in the agreement are also eliminated.
The completion of this transaction significantly enhances Resideo's strategic and financial flexibility, simplifying its capital structure. Other agreements with Honeywell, including the long-term license to use the Honeywell Home brand, remain in effect, ensuring continuity for key product lines.
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