Solstice Advanced Materials has agreed to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion, including assumed net debt.

 

Thus, creating a larger specialty materials company with an expanded presence in semiconductor manufacturing, AI infrastructure and advanced electronics.

 

Under the agreement, Element shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each Element share, representing implied consideration of approximately $50.10 per share, a 15% premium to Element's July 2 closing price. 

 

Following the transaction, Element shareholders are expected to own approximately 44% of the combined company.

 

The acquisition marks Solstice's biggest move yet to expand its advanced materials portfolio, strengthening its position across semiconductor fabrication, advanced packaging, electronics assembly, thermal management and data center cooling.

 

The combined company would have generated approximately $6.8 billion in 2025 net sales with an adjusted EBITDA margin of 26%, including expected run-rate synergies. Solstice said the deal is expected to be accretive to sales growth and adjusted earnings per share in the first year after closing.

 

"Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets," said David Sewell, President and CEO of Solstice. 

 

"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. 

 

"This high-performing team brings with it inimitable domain expertise and customer process know-how in addition to a compelling track-record of value creation for shareholders. Together, we expect Element and Solstice to be extremely well positioned to deliver on our customers' growing requirements for signal integrity, thermal management, reliability and performance."

 

Sewell added, "Both companies have strong cultures grounded in integrity, innovation, teamwork and customer focus, with comprehensive patent portfolios and highly talented employees who are at the top of their profession. 

 

"We intend to blend the best of our talents and cultures to build an organization with a broader technology platform and a stronger ability to co-innovate with customers to develop unique solutions addressing emerging, complex requirements from our combined customer base."

 

Element Solutions CEO Ben Gliklich said the transaction builds on the company's strategy since its 2019 founding while expanding opportunities in electronics and advanced materials.

 

"Since Element's founding in 2019, we have delivered a strategy balancing operational excellence and prudent capital allocation to cement our position in the fastest growing, highest value niches of our markets. 

 

"This transaction recognizes that achievement and brings together two great companies with shared attributes – strong market positions, attractive margins, deep technical know-how and excellent people – to accelerate their combined growth. 

 

"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. We believe that the breadth of the combined portfolio along with enhanced innovation and manufacturing capabilities will allow us to better solve the pain points emerging in the leading edge of the electronics industry."