Solstice to Acquire Element Solutions in $14.5B Advanced-Materials Deal
Solstice Advanced Materials has entered into a definitive agreement to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt.
The proposed combination would create a larger advanced-materials company with approximately $6.8 billion in combined 2025 net sales. Solstice said the transaction would expand its position in electronics, AI infrastructure, thermal management and data-center cooling.
Element Solutions supplies specialty chemical products and technical services to markets including electronics, automotive and industrial surface finishing. Its addition would bring formulation, R&D and technical-service capabilities to Solstice’s existing high-performance materials platform.
While Solstice is positioning the transaction around growth in semiconductor manufacturing and AI-related infrastructure, the deal also places a significant industrial surface-finishing business within the proposed combined company.
Under the agreement, Element Solutions shareholders would receive $10 in cash and 0.5 shares of Solstice common stock for each Element share. The implied value is approximately $50.10 per share, representing a roughly 15% premium to Element’s July 2 closing price.
Following closing, Element Solutions shareholders are expected to own approximately 44% of the combined company. The business would operate under the Solstice name, with Solstice President and CEO David Sewell continuing as CEO. Element Solutions CEO Ben Gliklich would join the board.
Solstice expects to realize more than $180 million in net synergies by the third year following closing through procurement, manufacturing, supply-chain and operating efficiencies. The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.
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