Solstice Advanced Materials, the former advanced materials division of Honeywell, spun off from the multinational in October 2025, has reached an agreement to acquire Element Solutions for a total amount of 14.5 billion dollars (12.675 billion euros), payable in a combination of cash and shares.
In accordance with the agreed terms, Element Solutions shareholders will receive for each ordinary share they own a payment of 10 dollars in cash and 0.5 ordinary shares of Solstice. This structure implies an implicit consideration of approximately 50.10 dollars per Element share and a premium of 15% over the closing price of the company's shares on July 2nd.
Once the operation is completed, which is expected to finalize in the first half of 2027, it is estimated that the current shareholders of Element will control around 44% of the capital of the new combined company, which will maintain the Solstice brand.
David Sewell, president and CEO of Solstice, will continue to perform the same functions at the head of the resulting group. The board of directors will be composed of 11 members, including Ben Gliklich, CEO of Element Solutions, and two other directors proposed by Element's current board, all subject to the usual corporate governance processes.
Solstice estimates that, in the third year after the closing of the transaction, it will be able to capture net synergies exceeding 180 million dollars (157 million euros), thanks to the rationalization of purchases, the improvement of manufacturing and supply chain processes, the increase in operational efficiency, and the reduction of general and administrative costs. In addition, the combined group expects significant additional benefits from new revenue synergy opportunities in the medium and long term.
"Element brings highly complementary capabilities, strong customer relationships, and a technical service-focused model that expands how we support customers from early development stages to large-scale manufacturing," commented David Sewell.
"We are creating a large-scale advanced materials platform with complementary capabilities to expand our offering in our key electronics markets and provide differentiated solutions to our customers," added Ben Gliklich, CEO of Element Solutions.