CHARLOTTE, North Carolina: Solstice Advanced Materials has agreed to acquire specialty chemicals company Element Solutions in a US$14.5 billion cash-and-stock deal, expanding its presence in materials used for artificial intelligence infrastructure, semiconductors and data centers.

The acquisition combines Solstice's refrigerants, specialty materials and uranium-conversion business with Element's electronics chemicals portfolio, creating a larger supplier to the semiconductor, electronics and industrial sectors.

Shares of Solstice fell nearly 13 percent, while Element shares were down 2.1 percent on July 6 following the announcement.

Solstice said the acquisition strengthens its strategy of building an advanced materials platform with greater exposure to electronics, AI infrastructure, thermal management and data-center cooling technologies, while expanding its global footprint.

Chief Executive David Sewell said the transaction is expected to generate more than $180 million in annual cost savings within three years of closing and broaden the company's reach in the semiconductor and electronics industries.

Company executives also said Solstice's uranium conversion and nuclear-services business would help position the combined company to benefit from rising electricity demand driven by the rapid expansion of AI-focused data centers.

Under the agreement, Element shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each share they own, representing an implied value of $50.10 per share, or a premium of nearly 15 percent to Element's previous closing price.

Solstice said it plans to finance the acquisition through a combination of stock, new debt and existing cash. The company has also secured an initial $4.7 billion bridge financing commitment from Goldman Sachs.

The transaction is expected to close in the first half of 2027, subject to customary approvals. The combined company will continue operating under the Solstice name, with Sewell remaining as chief executive.

Element Chief Executive Ben Gliklich will join Solstice's board of directors after the deal closes.