Solstice Advanced Mat Bets on AI Demand With $14.5B Element Solutions Deal

Solstice Advanced Mat Bets on AI Demand With $14.5B Element Solutions Deal

Solstice Advanced Materials agreed to buy Element Solutions in a cash-and-stock deal valued at about $14.5 billion , with Element shareholders receiving $10 in cash and 0.5 Solstice shares per share.

The deal implies a 15% premium and is expected to close in the first half of 2027, pending approvals.

Solstice says the combination will create a global advanced materials leader positioned to benefit from AI, advanced computing and data center demand , especially in semiconductor materials and thermal management.

The merged company is projected to have roughly $6.8 billion in 2025 net sales and $1.7 billion in adjusted EBITDA.

The company expects more than $180 million in annualized run-rate cost synergies within three years, and sees the deal as accretive to adjusted EPS in year one.

Solstice also plans to keep leverage under control, targeting net leverage below 3x within 18 months after closing.

Solstice Advanced Mat NASDAQ: SOLS announced an agreement to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt, executives said on a conference call discussing the deal.

Under the terms outlined by Solstice President and CEO David Sewell, Element Solutions shareholders will receive $10 in cash and 0.5 shares of Solstice common stock for each Element Solutions share.

Sewell said the consideration represents a 15% premium to Element Solutions’ closing price on Friday.

Upon closing, Element Solutions shareholders are expected to own approximately 44% of the combined company.