Solstice to Acquire Element Solutions in $14.5 Billion Deal

Solstice Advanced Materials announced Monday that it will acquire Element Solutions in a cash-and-stock transaction valued at roughly $14.5 billion. Solstice Advanced Materials CEO David Sewell said the combination creates a supplier of advanced materials serving semiconductor fabrication, advanced chip packaging, and thermal management.

He added that the deal broadens the company's exposure across the AI infrastructure supply chain and complements existing businesses in data center cooling and nuclear power.

Solstice shares closed down about 15 percent after the announcement. Element Solutions shares fell 3 percent. Sewell said the sell-off was partly driven by short-term trading activity rather than doubts about the strategy. "We know there were a lot of hedge funds, a lot of arbitrage in there," he said.

Solstice became a publicly traded company last fall after it was spun off from Honeywell Technologies. Sewell described the acquisition as positioning the combined firm to meet demand tied to AI infrastructure growth.