Solstice Advanced Materials agreed to acquire Element Solutions in a cash-and-stock transaction. The deal values Element at approximately $50.10 per share. Element shareholders will receive $10.00 in cash and 0.500 Solstice shares for each share owned. Upon closing, Element shareholders will own approximately 44% of the combined entity.
The merger creates an advanced materials platform focused on AI infrastructure and thermal management. The combined company will integrate Solstice’s electronics capabilities with Element’s data center cooling solutions. Management projects mid-to-high single-digit revenue growth over the medium term. The deal also aims to accelerate the growth of technologies like Kuprion ActiveCopper.
Solstice expects to achieve over $180 million in annual net synergies by the third year. These savings will come from procurement efficiencies and manufacturing optimization. Supply chain improvements and operational streamlining will also drive the anticipated cost reductions.