Solstice Advanced Materials to Buy Element Solutions in $14.5 Billion Deal
The acquisition creates an integrated electronics platform focused on advanced packaging and next-generation semiconductor materials.
Solstice Advanced Materials (SOLS) agreed to acquire Element Solutions (ESI) in a transaction valued at approximately $14.5 billion. The deal is structured as a mixed cash-and-stock transaction.
Under the terms of the agreement, Element Solutions shareholders are to receive $10.00 in cash and 0.500 shares of Solstice common stock. The transaction remains subject to regulatory and shareholder approvals.
The transaction unlocks the potential of a combined electronics platform, providing a competitive integrated offering in emerging technologies such as advanced packaging and next-generation semiconductor materials. David Sewell, President and CEO of Solstice, stated, "Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets".
Element Solutions brings focused electronics, formulation, and technical service capabilities that complement Solstice’s strengths in chemistry and high-performance materials. The combined entity will have a broader technology platform to support customers across semiconductor fabrication, packaging, and assembly.
Solstice expects the combination to be accretive to adjusted EPS in the first year after closing. The company anticipates realizing more than $180 million in net synergies by the third year, driven by procurement, manufacturing, and supply chain optimization.
Following the close, the combined company expects a net leverage of approximately 3.5x, with a goal to de-lever to below 3x Adjusted EBITDA within 18 months. Solstice intends to maintain a target net leverage ratio between 2.0x and 3.0x Adjusted EBITDA.