Solstice Advanced Materials said it will acquire Element Solutions in a transaction valued at approximately $14.5 billion, including assumed net debt, bringing together two companies with combined projected 2025 net sales of about $6.8 billion.
Under the terms of the agreement, holders of Element Solutions stock will receive $10.00 in cash plus 0.500 shares of Solstice common stock for each Element share. The consideration places a value on Element at roughly $50.10 per share, which the companies say represents a 15% premium to Element's closing price on July 2, 2026. Upon closing, former Element shareholders are expected to hold about 44% of the combined company.
Strategic rationale and management comments
Solstice's chief executive framed the deal as an acceleration of the company's plan to build a broader advanced materials platform and to expand its presence in markets including electronics and AI infrastructure. In his prepared remarks, the chief executive said Element brings complementary capabilities, established customer relationships and a technical, service-led model that extends the combined company's ability to support customers from early-stage development through high-volume manufacturing.
"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," the Solstice executive said.
Element's chief executive also commented on the transaction, describing it as a union of two companies with strong market positions and technical strengths. He said the combined business will provide broader offerings in core electronics markets and deliver differentiated solutions for customers.
"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," the Element executive said.
Financial profile, synergies and accretion
The companies expect the transaction to drive improved margin performance: the combined enterprise is projected to achieve a 26% adjusted EBITDA margin when run-rate synergies are included. Solstice estimates it will capture more than $180 million of net synergies by the third year after closing, driven by procurement efficiencies, manufacturing optimization and other operational savings.
The companies said the deal should be accretive to adjusted earnings per share in the first year following closing. At the time of close, the combined company is expected to have net leverage of approximately 3.5 times adjusted EBITDA, with a plan to reduce leverage to below 3 times adjusted EBITDA within 18 months.
Governance, approvals and timeline
Both boards have unanimously approved the agreement. The transaction remains subject to customary regulatory reviews and shareholder approvals from both companies. The parties expect to complete the deal in the first half of 2027.
When the transaction closes, Solstice's chief executive will serve as president and chief executive officer of the combined company, which will operate under the Solstice name. The post-closing board will consist of 11 directors, and Element's chief executive plus two other Element designees will join the board at closing.
Financing and market reaction
Goldman Sachs has provided a $4.7 billion bridge financing commitment to support the transaction. Solstice stated it intends to replace the bridge with permanent debt financing and will use cash on its balance sheet to fund the cash portion of the purchase price.
In early trading reaction reported by the companies, Solstice Advanced Materials shares rose about 1% in pre-market trading, while Element Solutions shares gained roughly 10%.
What this means for markets
The agreement brings together two specialty materials businesses into a larger platform focused on electronics-related end markets and AI infrastructure. The companies are projecting enhanced margins and substantial run-rate synergies while targeting leverage reduction in the near term. The deal will still require regulatory and shareholder clearances before any changes to ownership or management are effected.
This report is based on the terms and statements released by the companies. Details on execution and regulatory timing remain subject to the approvals noted above.