Solstice Advanced Materials, a specialty materials company, has announced a definitive agreement to acquire specialty chemicals manufacturer Element Solutions for a sum exceeding $12 billion. This acquisition is set to substantially broaden Solstice's footprint within the electronic materials and industrial specialty chemicals sectors.

Solstice Advanced Materials, which was spun off from Honeywell and began trading independently in 2025, concentrates on sustainable materials and specialty chemicals. Element Solutions is a globally recognized leader in specialty chemicals, with products extensively used in electronics manufacturing, surface treatment, and industrial processing. The company reported annual revenue of approximately $2.8 billion in 2025.

Under the terms of the agreement, Solstice will acquire all outstanding shares of Element Solutions at a price of roughly $33 per share, representing a premium of about 22% over the stock's closing price last Friday. The transaction consideration will comprise a combination of cash and stock, with the cash portion funded through bank financing and the company's own available funds.

The Chief Executive Officer of Solstice stated that the acquisition of Element Solutions marks a pivotal strategic move. It is expected to significantly bolster the company's technological capabilities and customer base in electronic materials, further solidifying its position in high-growth segments such as semiconductor packaging and circuit board manufacturing. He noted that Element Solutions' brand and market channels are highly complementary to Solstice's materials technology platform, and the combined entity will be well-positioned to offer more comprehensive solutions to customers.

The Chief Executive Officer of Element Solutions commented that the transaction delivers substantial premium value to shareholders while also providing a broader platform for the company's future development.

The deal is still subject to approval from regulatory authorities and the shareholders of Element Solutions, with completion anticipated in early 2027. Solstice projects that the transaction will be accretive to its adjusted earnings per share in the first full fiscal year following its close. Buoyed by the announcement, shares of Element Solutions surged approximately 20% in Monday's early trading. Both companies indicated they will continue to operate independently until the transaction closes, ensuring uninterrupted service for their customers.