Solstice Advanced Materials (Nasdaq: SOLS) will acquire Element Solutions (NYSE: ESI) in a cash-and-stock transaction. The deal is valued at approximately $14.5 billion, including debt. This merger marks a major consolidation within the specialty chemicals sector.
The combined company expects pro-forma 2025 net sales of approximately $6.8 billion. The entity targets an adjusted EBITDA margin of 26%.
This move increases Solstice's exposure to high-growth markets like AI infrastructure, data centers, and automotive systems. The strategy integrates Solstice's electronics packaging with Element’s chemical solutions to serve the advanced computing ecosystem. Solstice anticipates over $180 million in annual net synergies by the third year post-acquisition.