(RTTNews) - Solstice Advanced Materials Inc.(SOLS), an American specialty materials company, said on Monday that it has inked a deal to acquire Element Solutions Inc.(ESI), a chemical company, for $14.5 billion in cash-and-share, including the assumption of net debt.
The acquisition is expected to boost sales and adjusted earnings per share of the acquirer in one year post-close.
David Sewell, CEO of Solstice, said: "Element brings highly complementary capabilities, deep customer relationships…Together, we expect Element and Solstice to be extremely well positioned to deliver on our customers' growing requirements for signal integrity, thermal management, reliability, and performance."
Under the terms, ESI shareholders will receive $10 in cash and 0.500 shares of SOLS per ESI share. This represents implied consideration of around $50.10 per ESI share, a premium of around 15% over ESI's closing on July 2.
Solstice has secured fully committed financing for the acquisition in the form of an initial $4.7 billion bridge commitment from Goldman Sachs. The company will also use cash on hand to complete the transaction.
The transaction is expected to close in the first half of 2027. Post transaction, ESI shareholders are expected to own around 44% of the combined company.
Upon closing, the combined company will operate as Solstice, and Sewell will serve as the CEO.
Together, Solstice and Element would have reported full-year 2025 net sales of around $6.8 billion.
SOLS was down by 13.14% at $69.65 on the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
