Solstice Advanced Materials to acquire Element Solutions for more than $12 billion
Solstice said that this transaction will accelerate the company's strategic layout of building an advanced materials platform and further explore the promising special materials segment. Solstice Advanced Materials has reached an agreement to acquire specialty chemical company Element Solutions. Solstice Advanced Materials will acquire Element Solutions for more than $12 billion in a combination of cash and stock. Solstice Advanced Materials (stock code: SOLS, down 12.92%) has finalized a deal to acquire specialty chemical manufacturer Element Solutions (stock code: ESI, down 1.70%). The total consideration of the transaction exceeds US$12 billion, in the form of cash + stock payment. Solstice announced on Monday that the acquisition values Element at approximately $50.10 per share, a premium of approximately 15% to the Miami Beach, Florida, company's closing price of $43.64 on Thursday. Solstice is headquartered in Morris Plains, New Jersey. It specializes in refrigerants and high-end advanced materials. It recently graduated from The group is spun off and independent. The company disclosed the acquisition consideration plan: 1 share of Element corresponds to US$10 in cash, plus 0.5 new shares of Solstice; based on the closing price on Thursday, the corresponding stock value is approximately US$40.10. The transaction is expected to close in the first half of 2027. If the debt of the target company is taken into account, the overall valuation of this transaction is approximately US$14.5 billion. After the completion of the transaction, Element's original shareholders will hold approximately 44% of the shares of the new merged company; after the merger of the two companies, the combined revenue last year reached US$6.8 billion. Solstice said that this acquisition will accelerate the company's strategy of building a comprehensive advanced materials platform and significantly expand its business layout in high-growth areas, covering the electronics industry, AI computing power infrastructure, thermal management, data center liquid cooling and other high-quality special materials markets. The company stated that Element’s capabilities in electronic chemicals, formulation R&D and technical services can complement its own strengths in chemical R&D, application development, refrigerant solutions and high-performance materials. Solstice President and CEO David Sewell said: "Overall, the combined company will occupy an excellent industry position and fully benefit from the long-term development dividends of major high-growth end markets." Solstice revealed that part of the cash required for the acquisition will be through its own liquidity, with The company also emphasized that it will continue to maintain a strong and high-quality balance sheet.