The transaction, expected to close in the first half of 2027, will see Element Solutions shareholders receive $10.00 in cash and 0.500 shares of Solstice common stock for each share held. This represents a 15% premium over Element's closing price as of July 2, 2026. Once completed, Element investors will hold approximately 44% of the combined entity, which will retain the Solstice name and continue under the leadership of current Solstice CEO David Sewell.
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Solstice Advanced Materials to Acquire Element Solutions for $14.5 Billion
Solstice Advanced Materials has entered into a definitive agreement to acquire Element Solutions in a cash-and-stock deal valued at $14.5 billion, including net debt. This move aims to establish a dominant platform for advanced electronics, artificial intelligence infrastructure, and specialized cooling technologies by integrating the companies' research and manufacturing capabilities.
By uniting Solstice’s expertise in high-performance materials and refrigerants with Element’s specialized electronics formulation and technical services, the companies intend to capture growth in the AI hardware sector. Pro forma figures for 2025 suggest a combined entity with $6.8 billion in net sales and an adjusted EBITDA margin of 26% when accounting for anticipated synergies. Solstice projects at least $180 million in net synergies by the third year post-closing, driven by supply chain optimizations and manufacturing efficiencies. To fund the acquisition, Solstice has secured a $4.7 billion bridge commitment from Goldman Sachs, which will be supplemented by cash from its balance sheet and permanent debt financing.
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