Specialty Chemicals Giant Expands Reach with Strategic Buyout

Element Solutions Inc. is set to grow its business by acquiring EFC Gases & Advanced Materials. This deal is expected to close by the end of 2025, pending regulatory approvals. EFC specializes in high-purity gases and advanced materials, serving industries like semiconductors, aerospace, and electrical infrastructure. Their products are known for their quality and purity, thanks to strict global sourcing and advanced metrology processes. The acquisition is valued at roughly 12 times EFC's projected 2026 adjusted EBITDA. EFC has seen impressive growth, with revenue increasing by over 15% annually since 2009. Notably, their semiconductor product qualifications have surged by over 40% since 2023. This buyout aligns with Element Solutions' strategy to expand into fast-growing markets. Benjamin Gliklich, CEO of Element Solutions, praised EFC's specialized products and customer-centric approach. He highlighted the company's strong pipeline and potential for substantial earnings growth. With 40% of EFC's sales coming from semiconductors and 30% from satellite and space applications, this acquisition diversifies Element Solutions' portfolio. Pavel Perlov, CEO of EFC, expressed excitement about joining Element Solutions. He emphasized the shared vision for growth and innovation. Perlov is confident that this partnership will bring greater value to customers and markets served. Financially, EFC is expected to contribute about $30 million to Element Solutions' adjusted EBITDA in 2026. The deal will be funded through existing cash and additional debt. Additionally, Element Solutions plans to acquire Micromax from Celanese Corporation, which is expected to add $40 million to its adjusted EBITDA. Together, these acquisitions are projected to boost Element Solutions' earnings per share by over 7% in 2026. Element Solutions Inc. is a global leader in specialty chemical technology. Their products enhance the performance of everyday items, supporting industries like consumer electronics, automotive systems, and offshore energy. The company aims to leverage these acquisitions to drive innovation and growth.