ADI Global Distribution

As an independent company, ADI plans to emphasize organic growth (digital, exclusive brands, services), disciplined tuck‑ins and deleveraging. The spin structure used debt and preferred equity to fund a parent dividend, which raises execution stakes. Dividend policy on common is undecided, with preferred dividends at 7% payable in cash or in‑kind.

We view the focus on operating‑expense savings (>80 million dollars run‑rate targeted by 2027) and margin lift favorably, but would like to see consistent free cash flow and debt reduction before endorsing more aggressive buybacks or M&A.