SOLS · Solstice Advanced Materials Inc.

Solstice Advanced Materials Inc. announced the acquisition of Element Solutions Inc. in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt. The deal will create an industry-leading advanced materials platform with combined FY2025 net sales of approximately $6.8 billion and adjusted EBITDA of $1.7 billion (including $180 million in expected run-rate synergies), representing a 26% adjusted EBITDA margin. The transaction is expected to be accretive to adjusted EPS in the first year after close. Solstice secured a fully committed $4.7 billion bridge financing commitment from Goldman Sachs. The combined company will operate under the Solstice name, with David Sewell serving as CEO. The board will expand to 11 directors, including Element Solutions CEO Ben Gliklich and two other Element designees. The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Management expects net synergies of over $180 million by the third year post-close, driven by procurement, manufacturing optimization, and SG&A savings, with additional revenue synergy opportunities. The acquisition strengthens Solstice's exposure to high-growth electronics, AI infrastructure, and data center cooling markets, and positions the company for faster growth while maintaining strong margins and cash flow.