July 6 (Reuters) - Honeywell spinoff Solstice Advanced Materials said on Monday it will buy Element Solutions at about $14.5 billion, including debt, in a cash-and-stock deal.
The deal comes less than a year after Solstice completed its spin-off from industrial conglomerate Honeywell International.
The combination would create a larger supplier of materials used in semiconductor manufacturing, electronics and industrial applications.
Shares of Element Solutions rose 3.5% in premarket trading, while those of Solstice were down 3%.
Solstice said the transaction would strengthen its exposure to AI infrastructure by connecting its electronics, packaging and thermal management capabilities with data center cooling and refrigerant application solutions.
Element Solutions supplies specialty chemicals used in electronics manufacturing, semiconductors, communications infrastructure and automotive applications.
The transaction is expected to close in the first half of 2027.
Element Solutions shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each share of Element common stock.
Morris Plains, New Jersey-based Solstice manufactures refrigerants and applied solutions as well as electronic and specialty materials used in semiconductor production.
The company was spun out of Honeywell's advanced materials business in October 2025 as part of the industrial conglomerate's broader plan to separate into three publicly traded companies focused on automation, aerospace and advanced materials.
Honeywell completed the Solstice separation eight months before spinning off its aerospace business in June 2026.
(Reporting by Katha Kalia in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)
