Honeywell spinoff Solstice Advanced Materials will acquire Element Solutions in a $14.5 billion deal to strengthen its semiconductor and AI infrastructure materials business.
Specialty materials company Solstice Advanced Materials, recently spun off from Honeywell, has agreed to acquire Element Solutions in a deal valued at approximately $14.5 billion, strengthening its presence in semiconductor manufacturing and AI infrastructure.
The cash-and-stock transaction will combine Solstice’s portfolio of refrigerants, specialty materials and uranium conversion business with Element Solutions’ electronics chemicals, creating a broader supplier for the semiconductor, electronics and industrial sectors.
Solstice said the acquisition supports its strategy of building an advanced materials platform focused on AI infrastructure, thermal management, data-center cooling and electronics. The combined company is expected to generate more than $180 million in annual cost synergies within three years of closing.
The addition of Solstice’s uranium conversion and nuclear services business is also expected to position the company to benefit from rising electricity demand driven by AI-powered data centres.
Under the agreement, Element shareholders will receive $10 in cash and 0.5 Solstice shares for each share they own, valuing Element at $50.10 per share, a premium of nearly 15% over its previous closing price.
Solstice plans to finance the acquisition through a combination of new debt, stock issuance and available cash. It has also secured an initial $4.7 billion bridge financing commitment from Goldman Sachs.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals and shareholder consent. The merged entity will continue operating under the Solstice name, with CEO David Sewell leading the company. Element Solutions CEO Ben Gliklich will join Solstice’s board after the deal is completed
