Solstice Acquires Element Solutions in $14.5B AI-Focused Deal

The all-cash transaction, announced Monday, values Element Solutions at $14.5 billion and is expected to close in the second half of 2025, subject to shareholder and regulatory approvals.

Solstice will gain Element Solutions' specialty chemicals and materials businesses, which supply semiconductor fabrication and data center cooling systems. The acquisition aligns with Solstice's push into AI infrastructure, as demand for high-performance computing drives need for advanced materials.

Element Solutions shareholders will receive $32.50 per share, a 22% premium over the company's closing price on Friday. The deal is expected to add to Solstice's earnings per share within the first full year after closing.

Solstice plans to finance the acquisition through a combination of cash on hand and new debt. The company said it will maintain its investment-grade credit rating and expects to reduce leverage to pre-deal levels within 24 months.

The combined company will have annual revenue of approximately $28 billion and employ over 40,000 people worldwide. Solstice said it will integrate Element Solutions' operations into its existing electronics and industrial divisions.