Solstice Advanced Materials Inc. (NYSE:SOLS) shares are jumping Friday after the company and Element Solutions mutually agreed to terminate their pending merger. Here’s what you need to know.
- Solstice Advanced Mat stock is among today’s top performers. Why is SOLS stock up today?
Solstice And Element Solutions Mutually End Merger Agreement
Element Solutions and Solstice called off their planned combination by mutual agreement, the companies confirmed. Element Solutions Chairman Ian Ashken acknowledged the deal made sense on paper from both a strategic and financial standpoint but said input from shareholders ultimately pushed both boards toward the same conclusion: each company would be better served staying independent for the time being.
Ashken noted that Element Solutions investors had signaled they valued the company’s current leadership team, culture and business setup just as they stand today, prompting the board to respond accordingly, and he closed by extending good wishes to Solstice’s team.
Element Solutions CEO Benjamin Gliklich described the decision to walk away as a straightforward outcome of listening to what shareholders and other stakeholders had been telling the company.
Gliklich said Element Solutions intends to stay the course on its existing playbook, prioritizing efficient operations, careful use of capital and assembling a highly driven workforce, while emphasizing that the business hasn’t lost any of its momentum and remains on track with previously issued guidance. Citing a solid balance sheet and early success from newly launched products, Gliklich stated he’s optimistic about what lies ahead for the company.
Solstice Announces New $500 Million Share Buyback
Beyond the merger news, Solstice used the same announcement to unveil a fresh capital return plan. The company’s board signed off on a buyback program that clears the way for Solstice to repurchase as much as $500 million worth of its own shares.
CEO David Sewell said this inaugural buyback effort signals how much confidence leadership and the board have in where Solstice is headed strategically, its growth potential, and its capacity to build value for shareholders over time, while also reflecting the company’s dedication to spending capital wisely and putting money back in shareholders’ pockets. Solstice noted that a Form 8-K filed with securities regulators contains further specifics on how the buyback will work.
SOLS Shares Are Soaring
SOLS Price Action: Solstice shares were up 15.96% at $65.33 at the time of publication on Friday, according to Benzinga Pro.
Image: Shutterstock
Login to comment