Solstice scraps Element Solutions deal, approves $500M buyback

Solstice Advanced Materials Inc. (Nasdaq: SOLS) and Element Solutions Inc. (NYSE: ESI) have mutually agreed to terminate their previously announced merger agreement, with neither party owing fees as a result of the termination.

Rajeev Gautam, chairman of the Solstice board, said both boards unanimously concluded that ending the agreement was in the best interests of shareholders, employees, and customers, citing shareholder feedback about Solstice's strategy as an independent company.

Alongside the termination announcement, Solstice's board approved a share repurchase program authorizing the purchase of up to $500 million of its common stock. The company filed a Form 8-K with the SEC detailing the program.

Solstice also reaffirmed its financial guidance for the third quarter and full year 2026. The company projects full-year net sales of $4,125 million to $4,185 million, adjusted EBITDA of $1,035 million to $1,055 million, and adjusted diluted earnings per share of $2.75 to $2.95. Capital expenditures are expected to range from $420 million to $440 million. Third-quarter net sales guidance stands at $990 million to $1,030 million.

Chief Executive David Sewell said the company's cash flows and balance sheet support both organic growth investments and capital returns to shareholders.

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