Solstice Advanced Materials, the business that was separated from Honeywell International late last year, said on Monday it will purchase Element Solutions in a cash-and-stock transaction that values the combined deal at roughly $14.5 billion including debt.
Under the terms announced, Element Solutions shareholders will receive $10.00 in cash plus 0.500 shares of Solstice common stock for each share of Element common stock. The companies said the transaction is expected to be completed in the first half of 2027.
Solstice described the agreement as a way to broaden its exposure to advanced electronics and AI infrastructure by aligning its existing capabilities in electronics, packaging and thermal management with Element Solutions' products for data center cooling and refrigerant applications. Element Solutions supplies specialty chemicals used in electronics manufacturing and semiconductor production, along with materials for communications infrastructure and automotive end markets.
Market responses were mixed in premarket trading on the announcement. Element Solutions shares rose about 3.5 percent ahead of the session, while shares of Solstice traded lower by approximately 3 percent, according to premarket quotes. Honeywell shares were also shown moving in premarket trading.
The acquisition comes less than a year after Solstice completed its separation from Honeywell. Solstice was spun out of Honeywell's advanced materials unit in October 2025, part of Honeywell's plan to split into three public companies focused on automation, aerospace and advanced materials. Honeywell completed the Solstice separation about eight months before spinning off its aerospace business in June 2026.
Company statements emphasize that the deal would create a larger supplier of materials serving semiconductor manufacturing, electronics and broader industrial applications. Solstice, based in Morris Plains, New Jersey, manufactures refrigerants and applied solutions as well as electronic and specialty materials used in semiconductor production.
Investors and market participants will watch the deal timeline and the mix of cash and stock consideration, which ties Element Solutions shareholders' economics in part to the future performance of Solstice stock. The firms did not detail additional integration plans or regulatory steps in the announcement, and the companies noted only the expected closing window in 2027.
Deal specifics and near-term context
- The total consideration is about $14.5 billion including debt, paid as cash plus Solstice common stock.
- Element Solutions shareholders receive $10.00 per share in cash and 0.500 shares of Solstice common stock per Element share.
- The transaction is expected to close in the first half of 2027.
Market and sector implications
- The combined company would be a larger supplier to customers in semiconductor manufacturing, electronics and industrial markets.
- Solstice framed the acquisition as strengthening its presence in AI infrastructure by linking electronic materials and thermal management with data center cooling and refrigerant solutions.