Element Solutions Lands $14.5B Solstice Deal as AI Data Center Demand Booms

Solstice Advanced Materials said it has agreed to acquire Element Solutions NYSE: ESI in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt, as the companies outlined plans to create a larger advanced materials platform with a heavier focus on electronics, data centers and related thermal management applications.

Under the agreement, Element Solutions shareholders will receive $10 in cash and 0.5 shares of Solstice common stock for each Element Solutions share. Solstice President and CEO David Sewell said the offer represented a 15% premium to Element Solutions’ closing share price on Friday. Upon closing, Element Solutions shareholders are expected to own approximately 44% of the combined company.

The transaction is expected to close in the first half of 2027, subject to approvals from both companies’ shareholders, regulatory approvals and customary closing conditions. The combined company will operate as Solstice, with Sewell serving as CEO. Element Solutions CEO Ben Gliklich is expected to join Solstice’s board, along with two other designees from Element Solutions’ board, subject to standard governance procedures.

Sewell said the deal accelerates Solstice’s strategy as an independent company and creates what he described as a global advanced materials leader with expected combined 2025 net sales of approximately $6.8 billion and adjusted EBITDA of $1.7 billion. He said the combined company would have leading positions across end markets and more than 8,300 patents and pending applications.