Solstice Advanced Materials (SOLS) Acquisition presentation summary

Strategic rationale and growth opportunities

• Acquisition of Element Solutions unlocks a competitive, integrated electronics platform, expanding into advanced packaging and next-generation semiconductor materials.

• Highly complementary formulation and synthetic chemistry capabilities position the combined entity as a preferred partner for solving critical customer challenges.

• Anticipated synergies of over $180 million by year 3, accretive to growth, adjusted EPS, EBITDA margins, and cash conversion.

• Nuclear remains a core growth pillar, with over $2 billion in backlog and expected double-digit EBITDA CAGR through 2030.

• Proven integration team in place to drive execution and value creation.

Financial impact and synergy realization

• Combined 2025 revenue projected at $6.8 billion and adjusted EBITDA at $1.7 billion, with a 26% margin (28% ex-metals).

• Expected net synergies exceed $180 million by year 3, with a run rate of ~$210 million, primarily from cost savings and operational efficiencies.

• Free cash flow conversion expected at ~75% in the medium term, supporting rapid deleveraging and ongoing investment.

• Net leverage targeted below 3.0x within 18 months post-close, supported by strong cash flow and $4.7 billion in committed bridge financing.

• Capital allocation prioritizes growth investments, dividends, and opportunistic portfolio optimization.

Market positioning and innovation

• Expanded platform increases exposure to high-growth end markets such as advanced compute, AI, and electrification.

• Robust innovation pipeline includes advanced packaging, thermal management, and patented nano-copper materials for improved performance.

• Combined entity will have 65 manufacturing sites, 25 R&D centers, and over 8,300 patents, serving customers in 100+ countries.

• Customer testimonials highlight demand for broader portfolios and deeper partnerships with materials suppliers.

• Additional revenue and cost synergies expected from complementary product portfolios and optimized channel strategies.