Solstice acquiring Element Solutions in $14.5B cash and stock deal

Investing.com -- Solstice Advanced Materials announced today it will acquire Element Solutions in a transaction valued at approximately $14.5 billion, including assumed net debt. The deal combines two advanced materials companies with combined 2025 net sales of approximately $6.8 billion.

Under the agreement, Element Solutions shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each Element share. The transaction values Element at approximately $50.10 per share, representing a 15% premium over Element's closing price on July 2, 2026. Element shareholders will own approximately 44% of the combined company upon closing.

David Sewell, President and CEO of Solstice, said the transaction accelerates the company's strategy to build an advanced materials platform with increased exposure to electronics, AI infrastructure and other markets. "Element brings highly complementary capabilities, deep customer relationships and a technical service-led model that expands how we support customers from early-stage development through high-volume manufacturing," Sewell said.

Ben Gliklich, Chief Executive Officer of Element Solutions, said the combination brings together two companies with strong market positions and technical capabilities. "We are creating a scaled advanced materials platform with complementary capabilities to broaden our offerings in our core electronics markets and deliver differentiated solutions to customers," Gliklich said.

The combined company expects to achieve a 26% adjusted EBITDA margin including run-rate synergies. Solstice anticipates realizing more than $180 million of net synergies by the third year following close through procurement efficiencies, manufacturing optimization and operational savings.

The transaction is expected to be accretive to adjusted earnings per share in year one. The combined company expects net leverage of approximately 3.5 times at close and plans to reduce leverage to below 3 times adjusted EBITDA within 18 months.

Both companies' boards have unanimously approved the transaction, but the deal still requires regulatory approvals and shareholder approval from both companies. Closing is expected in the first half of 2027.

Sewell will serve as President and Chief Executive Officer of the combined company, which will operate as Solstice. The board will include 11 directors, with Gliklich and two other Element designees joining upon closing.

Goldman Sachs provided a $4.7 billion bridge commitment to finance the transaction. Solstice plans to replace this with permanent debt financing and will use cash from its balance sheet to fund the cash consideration.

Solstice Advanced Materials shares rose 1% in pre-market trading today. Element Solutions shares gained approximately 10%.

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