Solstice Advanced Materials to buy Element Solutions for $14.5 billion

Solstice Advanced Materials, a company that recently separated from Honeywell, announced its intention to acquire Element Solutions for $14.5 billion, including debt. This strategic move is designed to significantly increase Solstice's exposure to the burgeoning artificial intelligence (AI) market.

The transaction is expected to accelerate Solstice's strategy of building an industry-leading advanced materials platform. The acquisition will provide greater access to the electronics sector, AI infrastructure, and other attractive end markets. Element Solutions brings specialized capabilities in electronics, formulation, and technical service, complementing Solstice's existing strengths in chemistry, application development, refrigerant solutions, and high-performance materials.

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Build a leading industry materials platform with greater exposure to electronics, AI infrastructure, and other attractive end markets.

Upon completion, the combined entity aims to establish an integrated electronics platform covering semiconductor manufacturing, packaging, and assembly. It will also expand thermal management capabilities for chip cooling and data centers. Solstice anticipates that the merged company will maintain its unique position as the sole U.S. provider of uranium conversion services essential for the nuclear fuel cycle.

Under the terms of the agreement, Element Solutions shareholders will receive $10 in cash and half a share of Solstice for each of their existing shares. Both companies' boards of directors have approved the transaction, which is projected to finalize in the first half of 2027, contingent upon regulatory and shareholder approvals. If the companies had been combined in 2025, they estimate their net sales would have reached $6.8 billion.

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Element brings capabilities focused on electronics, formulation, and technical service, and a strong technology portfolio that complements Solstice's strengths in chemistry, application development, refrigerant solutions, and high-performance materials.