MacDermid Enthone’s parent, Element Solutions, says it has canceled its $14.5 billion agreement to be acquired by Solstice Advanced Materials, just two months after announcing the deal.
Ian G.H. AshkenElement Solutions says that the merger agreement between them and Solstice Advanced Materials “has been mutually terminated.” They cited shareholder feedback for the cancellation. The combined company was to operate as Solstice
“While the strategic and financial rationale of the proposed transaction was compelling, based on constructive feedback from our shareholders and discussions between the parties, both companies’ boards concluded that Element Solutions and Solstice would serve our respective shareholders better as standalone companies at this time,” says Element Solutions Chairman Ian G.H. Ashken. “We took note that Element Solutions shareholders appreciate the strength of our management team, unique culture, and business portfolio as currently constructed and acted accordingly. We wish the Solstice team well in the future.”
Element Solutions — whose subsidiary, MacDermid Enthone, offers advanced surface-finishing technology — is a leading global specialty chemicals company serving multiple high-value industries, including semiconductor fabrication, high-performance computing, automotive systems, consumer electronics, power electronics, communications and data storage infrastructure, aerospace and defense, industrial surface finishing, and offshore energy.
Based in Morris Plains, New Jersey, Solstice offers solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging, and more. Solstice brands include Solstice, Genetron, Aclar, Spectra, Fluka, and Hydranal. Solstice has over 3,000 customers in more than 120 countries and territories, over 5,700 patents and pending applications, and approximately 4,000 employees worldwide.
Element Solutions Chief Executive Officer Benjamin Gliklich says shareholders and others voiced opposition to the acquisition.
“At Element Solutions, we work for our shareholders and other stakeholders and have heard their feedback clearly,” Gliklich says. “The termination of the proposed transaction is a direct response to that feedback. Going forward, we plan to continue to execute our strategy focused on operational excellence, prudent capital allocation, and developing the best, most entrepreneurial team in our industry. Our growth trajectory remains compelling, and the momentum in our business continues unabated and in line with our guidance. With a healthy balance sheet and exciting new product introductions continuing to gain traction, we look forward to the significant opportunities ahead for Element Solutions and our businesses.”
An announcement issued by both companies says that, under the terms of the merger agreement and the termination agreement entered into between the parties, neither Element Solutions nor Solstice will be responsible for any payments to the other party as a result of the mutually agreed termination of the proposed transaction.
