Element Solutions Inc. (ESI) has entered into a definitive agreement to be acquired by Solstice Advanced Materials in a cash-and-stock transaction valued at approximately $14.5 billion, which includes assumed net debt. The deal will close in the first half of 2027, pending shareholder and regulatory approvals.
Under the terms, ESI shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each ESI share owned, marking a valuation of about $50.10 per share, which represents a 15% premium to ESI’s closing price on July 2, 2026. Existing ESI shareholders are expected to own approximately 44% of the combined company after the transaction.
This acquisition aims to enhance Solstice’s portfolio in high-growth sectors like semiconductors and AI. The companies anticipate over $180 million in net cost synergies within three years post-closing, with projected mid-to-high single-digit CAGR revenue growth and cash conversion of around 75% in the medium term.
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