What happened
According to a Securities and Exchange Commission (SEC) filing dated Feb. 9, 2026, Clayton, Dubilier & Rice, LLC (CD&R) increased its stake in Resideo Technologies (REZI 2.04%) by 1,689,758 shares. The estimated transaction value, based on the average quarterly closing price, was approximately $62.53 million. The fund's quarter-end position value in Resideo Technologies decreased by $47.74 million, reflecting both new purchases and stock price movements.
What else to know
This buy brings the Resideo Technologies stake to 88.4% of 13F reportable AUM as of Dec. 31, 2025.
- Top holdings after the filing:
- Resideo Technologies: $525.96 million (88.4% of AUM)
- Agilon Health: $69.00 million (11.6% of AUM)
As of Feb. 6, 2026, shares were trading at $36.38, up 65.3% over the past year and outperforming the S&P 500 by 53 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2/6/26) | $36.38 |
| Market Capitalization | $5.44 billion |
| Revenue (TTM) | $7.44 billion |
| Net Income (TTM) | ($640.00) million |
Company Snapshot
Resideo Technologies:
- Provides comfort, residential thermal, and security solutions, including temperature and humidity controls, security panels, sensors, and smart home products, primarily under the Honeywell Home brand.
- Operates through two segments: Products & Solutions, which manufactures and sells proprietary products, and ADI Global Distribution, which distributes a broad portfolio of security and connected home products to commercial and residential markets.
- Serves contractors, original equipment manufacturers, service providers, and retailers targeting both residential and non-residential end-users in the United States, Europe, and internationally.
Resideo Technologies provides smart home, security, and comfort solutions with a global distribution network and a diversified product portfolio. The company leverages its established brands and broad channel access to serve both commercial and residential markets at scale.
What this transaction means for investors
Private equity firm Clayton, Dubilier, and Rice (CD&R) added to its Resideo Technologies holdings for the third straight quarter. This is noteworthy for investors not only because the company now owns 88% of the firm’s holdings, but because the purchases are taking place months before Resideo’s upcoming spinoff. To me, this indicates that the firm sees potential upside in Resideo and ADI being separate entities. I’d tend to agree as the companies focus on adjacent yet different niches in the Internet of Things world.
Resideo is a manufacturer of residential controls and sensing solutions, whereas ADI is a distributor of security and audio-visual solutions. This type of transaction is right down CD&R’s alley, as it likes to partner with companies to improve and streamline their operations. An upcoming spinoff like this is an ideal situation for them to leave their mark on the process. With the combined company trading at just 0.7 times sales and an EV/EBITDA ratio of 11, there is minimal upside priced into the stock.
One thing for investors to note is that CD&R isn’t making an “all-in” bet on REZI. The company may account for 88% of CD&R’s portfolio, but this is just of its publicly-traded holdings. For example, the firm acquired Sealed Air Corporation last year for $10.3 billion, so its $525 million stake in Resideo is a mere fraction by comparison. And this Sealed Air holding is just one of dozens. It will be fun to watch Resideo, its upcoming spinoff, and CD&R’s stake in the company over the coming months, and investors will want to watch for upcoming growth guidance for the new companies once they separate later in the year, as they could be interesting opportunities.
