Element Solutions to acquire EFC Gases

Element Solutions Inc (NYSE: ESI) announced it has signed a definitive agreement to acquire EFC Gases & Advanced Materials for approximately 12 times forecasted 2026 adjusted EBITDA in cash, subject to adjustments.

The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions. Element Solutions will fund the acquisition using cash on hand and incremental debt.

EFC provides high-purity specialty gases and advanced materials to semiconductor manufacturing, aerospace, and electrical infrastructure industries. The company has achieved revenue growth exceeding 15% annually since 2009, with acceleration this year primarily in semiconductor applications. EFC increased its semiconductor product qualifications by more than 40% since 2023.

Approximately 40% of EFC's sales come from semiconductor markets and 30% from satellite and space applications. Element Solutions expects EFC to contribute approximately $30 million to its adjusted EBITDA in 2026.

"EFC is an outstanding business. It offers a highly specialized portfolio of products and solutions that support the fastest growing end-markets in the physical economy," said Benjamin Gliklich, Element Solutions' chief executive officer.

The acquisition follows Element Solutions' previously announced agreement on October 28, 2025, to acquire Micromax from Celanese Corporation, which is expected to contribute approximately $40 million to adjusted EBITDA on a full-year basis.

Combined, the EFC and Micromax transactions are expected to be over 7% accretive to Element Solutions' adjusted earnings per share in 2026. On a pro forma basis reflecting both transactions, the company's net debt to adjusted EBITDA ratio at year end 2025 would be under 3.0x.

You May Also Be Interested In