Solstice Advanced Materials, a Honeywell spinoff, said on July 6 that it would buy Element Solutions, a US-based specialty chemicals company, in a US$14.5 billion cash-and-stock deal to expand in semiconductor, electronics, and AI infrastructure markets.

Element shareholders will receive US$10 in cash and 0.500 Solstice shares for each Element share, implying a value of US$50.10 per share.

Solstice said it would fund the transaction with stock, new debt, cash on hand, and an initial US$4.7 billion bridge commitment from Goldman Sachs.

The deal adds Element’s electronics chemicals business to Solstice’s advanced materials portfolio.

Honeywell said Solstice’s portfolio includes refrigerants, semiconductor materials, protective fibers, and healthcare packaging, while Element serves semiconductor fabrication, high-performance computing, consumer electronics, and data storage infrastructure.

The combined company will retain the Solstice name after the deal is expected to close in the first half of 2027 and would more than US$180 million in annual cost savings within three years.

Following the transaction, Element shareholders are expected to own about 44% of the combined company, while projected net leverage is expected to be about 3.5x at closing.

Solstice shares fell nearly 13% after the announcement.

🔗 Source: Reuters