Solstice Advanced Materials

Solstice has announced a definitive agreement to acquire Element Solutions for about $14.5 billion (including net debt). Element shareholders will receive $10.00 in cash plus 0.500 common shares of Solstice per share, implying consideration of roughly $50.10; the stock component sparked dilution concerns and a roughly 6.5% premarket decline in Solstice shares. A committed $4.7 billion bridge financing from Goldman Sachs was arranged to fund the deal, which is expected to raise net leverage to about 3.5x; management, however, targets reducing leverage below 3x within 18 months, delivering adjusted EPS accretion in year one and annual net synergies of over $180 million by year three. » More on de.investing.com

Solstice Advanced Materials is in talks to merge with Element Solutions in a deal that would create a specialty chemicals company with an enterprise value of about $27 billion. The negotiations envision a transaction largely settled in stock, potentially with a cash component, and could reach an agreement as soon as this week, though a collapse remains possible. The combined company would bolster Solstice’s position in advanced materials for chipmaking by combining its polymers, high-performance fluids and process materials with Element’s electronics, semiconductor and automotive portfolio. » More on de.investing.com

BMO Capital Markets has named Solstice Advanced Materials (SOLS) the top pick in the US chemicals sector and raised the price target to $101. Analysts cite the nuclear materials division’s strong positioning and high secular growth potential as reasons for the upgrade. SOLS reported first-quarter revenue of $991 million and EPS of $0.63; Truist initiated coverage with a "hold" rating and a $90 price target. » More on de.investing.com