Solstice Advanced Materials, based in Morris Plains, New Jersey, has entered into a definitive agreement to acquire Miami-based Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion.

According to the companies, the acquisition combines Solstice's advanced materials portfolio with Element's specialty chemicals business, expanding capabilities for semiconductor manufacturing, electronics packaging, thermal management, data center cooling and other specialty applications.

The companies said the combined business would have approximately $6.8 billion in 2025 net sales and will integrate Element's formulation expertise, research and development capabilities, technical service organization and electronics technologies into Solstice's existing advanced materials platform.

"Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets," said David Sewell, president and CEO of Solstice, in a statement. "Element brings highly complementary capabilities, deep customer relationships and a technical service-led model that expands how we support customers from early-stage development through high-volume manufacturing."

According to Solstice, the acquisition is expected to accelerate development of electronics materials, including Element's ActiveCopper technology, while broadening the company's position in data center cooling and other advanced computing applications.

The boards of both companies unanimously approved the transaction, which is expected to close during the first half of 2027, subject to regulatory and shareholder approvals. The combined company will operate as Solstice, with Sewell continuing as president and CEO and Element CEO Ben Gliklich joining the board of directors.