Solstice to buy Element in $14.5bn deal

Solstice Advanced Materials has entered a definitive agreement to acquire Element Solutions in a transaction valued at approximately $14.5 billion, including the assumption of net debt. The announcement was made on July 6, 2026, following unanimous approval by the boards of directors of both companies. The deal is structured as a cash-and-stock transaction and will result in a combined entity operating in advanced materials markets under the Solstice brand.

Under the agreed terms, Element Solutions shareholders will receive, for each Element share, $10.00 in cash and 0.500 shares of Solstice common stock. This package implies a value of about $50.10 per Element share and represents a premium of roughly 15% over Element’s closing share price on July 2, 2026. The mix of cash and stock is designed to provide immediate value while giving Element investors ongoing participation in the combined company.

Upon closing, Element Solutions shareholders are expected to own approximately 44% of the combined company. The enlarged business will operate under the Solstice name, reflecting the acquirer’s corporate identity. Governance and leadership arrangements have been defined, with David Sewell set to serve as President and Chief Executive Officer of the merged organization.

The companies describe the transaction as a merger that will bring together complementary materials and solutions portfolios. While Solstice will remain the corporate name, Element’s shareholders will have a significant minority stake in the combined entity, aligning interests across both legacy investor bases.

On a combined basis, Solstice and Element project full-year 2025 net sales of about $6.8 billion. The pro forma adjusted EBITDA margin for the combined company is projected at around 26%, including anticipated run-rate synergies. These figures are based on the companies’ current expectations for their businesses once integrated.

Solstice expects the transaction to generate more than $180 million of net synergies by the third year after closing. The synergy target reflects planned efficiencies and integration benefits across operations, though specific line items were not detailed in the announcement. The financial goals are intended to support a stronger earnings profile for the combined company over time.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions. These include receipt of required regulatory approvals and the approval of shareholders of both Solstice and Element, where applicable. Until closing, the two companies will continue to operate independently.

The deal involves a significant cash component alongside stock issuance, and the valuation includes the assumption of Element’s net debt. Completion will mark the integration of Element into Solstice’s corporate structure, with the resulting company positioned as a larger participant in advanced materials markets once regulatory and shareholder processes are completed.