The basics:

• Solstice Advanced Materials to acquire Element Solutions for $14.5B
• Deal creates advanced materials platform focused on AI, electronics markets
• Combined company expected to generate $6.8B in 2025 sales
• Solstice will continue operating under its name after closing

Morris Plains-based Solstice Advanced Materials has agreed to acquire specialty chemicals company Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion. The addition will create one of the industry’s largest advanced materials platforms focused on high-growth electronics and artificial intelligence markets.

Announced July 6, the transaction includes the assumption of Element’s net debt. The deal is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.

The acquisition significantly expands Solstice’s footprint in semiconductor manufacturing, advanced packaging, thermal management and data center cooling — all markets that continue to benefit from growing investment in artificial intelligence infrastructure.

On a combined basis, the companies said they would have generated approximately $6.8 billion in 2025 net sales with an adjusted EBITDA margin of about 26%.

Element Solutions brings specialized capabilities in electronics materials, formulation expertise, technical services and customer relationships to complement Solstice’s portfolio of specialty materials, refrigerant technologies and thermal management solutions.

Catching ‘generational tailwinds’

“Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets,” said Solstice President and CEO David Sewell. “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.”

Sewell said the combination will better position the company to meet increasing customer demand driven by advanced semiconductor technologies and AI. “Together, we expect Element and Solstice to … to deliver on our customers’ growing requirements for signal integrity, thermal management, reliability and performance,” he said.

Element Solutions President and CEO Benjamin Gliklich said the acquisition will accelerate innovation across the electronics sector.

“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,” Gliklich said.

Sewell added, “Both companies have strong cultures grounded in integrity, innovation, teamwork and customer focus, with comprehensive patent portfolios and highly talented employees who are at the top of their profession.

“We intend to blend the best of our talents and cultures to build an organization with a broader technology platform and a stronger ability to co-innovate with customers to develop unique solutions addressing emerging, complex requirements from our combined customer base.”

Leadership structure

Under the terms of the agreement, Element shareholders will receive $10 in cash plus 0.50 shares of Solstice common stock for each Element share they own. That represents implied consideration of approximately $50.10 per share, or about a 15% premium to Element’s closing stock price July 2.

The boards of directors of both companies have unanimously approved the transaction.

We intend to blend the best of our talents and cultures to build an organization with a broader technology platform and a stronger ability to co-innovate with customers…
– David Sewell, Solstice Advanced Materials, president and CEO

Following the closing, the companies expect existing Solstice shareholders to own approximately 56% of the combined company. Element shareholders will own about 44%.

The combined business will continue operating under the Solstice name. Sewell will serve as president and CEO. Solstice’s board will expand from 11 to 14 directors, with three independent directors from Element joining.

The company also expects to build a combined leadership team drawing talent from both organizations. It also plans to maintain a significant operating presence across their respective existing locations.

Solstice was spun off from Honeywell in October 2025 and has its headquartered in Morris Plains. The company develops specialty chemicals and advanced materials used in electronics, refrigeration, energy, aerospace and other industrial markets.

Looking ahead, Sewell said the acquisition complements Solstice’s existing strengths and accelerates its long-term growth strategy.

“This transaction allows us to amplify our transformational growth in electronics while building on the strength of Solstice’s existing businesses,” Sewell said. “Together, we aim to create a higher growth, higher margin advanced materials leader with greater global reach.”