Solstice Advanced Materials NASDAQ:SOLS fell as Element Solutions NYSE:ESI saw its bid shrink during the selloff. New York, July 6, 2026, 14:06 EDT
- Solstice dropped 14.9% to $68.27 after it said it will buy Element Solutions in a $14.5 billion cash-and-stock deal.
- The live bid dropped to around $44.14 per Element share, off from the original $50.10, since half of each Element share gets paid in Solstice stock.
- Management is guiding for the combined company to post $6.8 billion in sales for 2025, $1.7 billion in adjusted EBITDA, and to reach over $180 million in yearly net synergies by the third year.
Solstice Advanced Materials Inc NASDAQ:SOLS dropped almost 15% in afternoon trading in New York on Monday after saying it will acquire Element Solutions Inc NYSE:ESI. The fall in Solstice shares wiped about $6 per share from the value of its mostly stock offer compared to the announced deal price. Solstice last traded at $68.27, off $11.92. Element slipped 2.8% to $42.40. The SPDR S&P 500 ETF Trust NYSEARCA:SPY gained 0.8%.
Deal terms are in focus, not just the headline. Element shareholders get $10 cash plus 0.5 Solstice shares for each Element share. Solstice said that worked out to $50.10 per Element share—a 15% premium to Element’s July 2 close using the pre-deal Solstice price. With Solstice’s Monday close, that payout drops to about $44.14.
| Deal value read-through | Announced math | Live Monday math |
|---|---|---|
| Solstice price for the stock leg | Roughly $80.20 | $68.27 |
| Element’s stock portion per share | Roughly $40.10 | $34.14 |
| Element’s cash per share | $10.00 | $10.00 |
| Total Element consideration | $50.10 | $44.14 |
| Element closing price | $43.64 at July 2 close | $42.40 |
| Premium or discount to implied | Not given | About 4.1% |
The premium for investors has turned into a shifting number since the exchange ratio doesn’t change. For every $10 swing in Solstice, the deal value shifts $5 per Element share. The $14.5 billion deal price is about 1.3x what Solstice’s market cap is right now, based on the current quote.
Solstice boss David Sewell said Element will add backing for customers from early-stage work to high-volume output, helping with signal integrity, thermal control, reliability and performance. Element chief Ben Gliklich said Element has carved out spots in what he called the highest value niches and sees long-term upside for shareholders. Sewell also called the integration strategy a “best-of-both approach.”
The companies pitched the deal as a way to speed up growth for Solstice, which went public less than a year ago after its spinoff from Honeywell International Inc NASDAQ:HON. Solstice began trading on Nasdaq on Oct. 30, 2025, following Honeywell’s distribution of one Solstice share for every four Honeywell shares held by qualifying holders.
The combined 2025 base is sizable. Solstice’s standalone 2025 revenue forecast is $3.9 billion, with adjusted EBITDA at $957 million. Element brings in another $2.9 billion in revenue and $609 million in adjusted EBITDA, not counting $180 million in expected run-rate synergies. The deal presentation pegs the combined adjusted EBITDA margin at 26%.
| 2025 financial bridge | Revenue | Adjusted EBITDA | Adjusted EBITDA margin |
|---|---|---|---|
| Solstice alone | $3.9 bln | $957 mln | 25% |
| Element Solutions | $2.9 bln | $609 mln | 21% |
| Run-rate synergies | — | $180 mln or more | — |
| Total combined | $6.8 bln | $1.746 bln | 26% |
The synergy target is roughly 10% of the merged 2025 adjusted EBITDA and about 2.6% of total sales. That only comes in at just over 1% of the announced deal value, so the share move points to investors seeing more than just cost cuts. Investors are also looking at debt and whether Solstice can speed up growth for Element’s electronics business. Element had 73% of its 2025 revenue coming from electronics; the combined group would get 34% from electronics and 43% from refrigerants and applied solutions.
| Management forecast | Solstice prior medium-term guide | Combined company forecast |
|---|---|---|
| Revenue CAGR | Low to mid-single digits | Mid to high-single digits |
| Adjusted EBITDA CAGR | Mid-single digits | High-single to low-double digits |
| Cash conversion | Above 70% | Around 75% |
| Net leverage | Not listed | Roughly 3.5x at closing; drops under 3x in 18 months |
Solstice said it lined up a $4.7 billion bridge loan from Goldman Sachs, planning to swap that out with permanent debt later. Element holders would take roughly 44% of the combined business once the deal closes. The transaction still needs sign-off from both Solstice and Element shareholders, plus regulators and other standard conditions. They expect to finish the deal in the first half of 2027.
