Solstice Advanced Materials (Nasdaq: SOLS) shares fell nearly 15% on Monday after the company announced a $14.5 billion cash-and-stock agreement to acquire Element Solutions (NYSE: ESI), in a deal aimed at expanding its footprint in advanced materials for electronics and AI…
frastructure. The transaction, which includes the assumption of net debt, will see Solstice acquire Element in a combination of $10.00 in cash and 0.500 shares of Solstice common stock for each Element share
The offer implies a value of approximately $50.10 per Element share and represents a premium of about 15% to Element’s closing price on July 2, 2026. Upon completion, Element shareholders are expected to own roughly 44% of the combined company. The companies said the deal would accelerate Solstice’s strategy of building a scaled advanced materials platform with greater exposure to high-growth end markets including electronics, AI infrastructure, thermal management and data center applications.
On a combined basis, Solstice and Element are projected to generate approximately $6.8 billion in full-year 2025 net sales, with an adjusted EBITDA margin of 26% including expected synergies. Solstice said the deal would broaden its electronics capabilities, adding Element’s formulation expertise, technical services and customer relationships to its existing chemistry and materials portfolio. “Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets,” said Solstice President and CEO David Sewell. He added that Element’s technical service model and customer relationships would expand Solstice’s ability to support clients from early-stage development through high-volume manufacturing.