Element Solutions to Acquire EFC Gases & Advanced Materials, Expanding Specialty Chemicals and Advanced Materials Portfolio
Element Solutions Inc (NYSE: ESI) (“Element Solutions,” “ESI,” or the “Company”), a leading global and diversified specialty chemical technology company, announced today that it has entered into a definitive agreement to acquire EFC Gases & Advanced Materials (“EFC”) for approximately 12 times forecasted 2026 adjusted EBITDA, payable in cash and subject to customary closing adjustments. The transaction is expected to close by the end of 2025, pending regulatory approvals and other standard closing conditions.
The acquisition of EFC strengthens Element Solutions’ position in high-growth, technology-driven markets through the addition of EFC’s portfolio of high-purity specialty gases and advanced materials. These products serve some of the world’s most dynamic and technically demanding industries, including semiconductor manufacturing, aerospace, satellite systems, and electrical infrastructure.
EFC: A Proven Leader in Specialty Gases and Materials
Founded on a deep commitment to precision, reliability, and quality, EFC Gases & Advanced Materials has built a strong global reputation as a supplier of high-purity specialty gases and innovative materials solutions. The company’s rigorous sourcing and manufacturing standards, supported by advanced metrology and analytical processes, ensure product integrity and purity levels that meet the stringent requirements of modern manufacturing and scientific applications.
EFC’s product offering goes beyond gas supply. The company also provides tailored gas recovery and recycling systems that enable customers to improve process efficiency, reduce waste, and enhance sustainability — critical considerations in industries under increasing environmental and regulatory pressure. These recovery systems have been instrumental in helping EFC’s clients achieve cost savings while reducing their carbon footprint.
Over the past decade, EFC has demonstrated an impressive revenue compound annual growth rate (CAGR) exceeding 15% since 2009, a testament to its technological leadership and ability to anticipate customer needs in fast-moving markets. Growth has accelerated even further in recent years, driven primarily by strong demand in the semiconductor sector, where EFC’s products play a vital role in chip manufacturing processes. Since 2023 alone, the company has increased the number of semiconductor product qualifications in its portfolio by more than 40%, reinforcing its reputation as a trusted supplier to top-tier technology companies.
Strategic Fit and Growth Synergies
Benjamin Gliklich, Chief Executive Officer of Element Solutions, praised EFC’s team and capabilities, emphasizing the strategic value of the acquisition:
EFC is an outstanding business. It offers a highly specialized portfolio of products and solutions that support some of the fastest-growing end markets in the physical economy. Their focus on niche, high-value products and their people-centric culture have created remarkable momentum and a robust pipeline of customer qualifications that we expect will translate into substantial earnings growth.
According to Gliklich, approximately 40% of EFC’s sales come from the semiconductor industry, while another 30% originate from satellite and space applications — both markets characterized by high technological barriers and sustained demand growth. These factors make EFC a natural complement to Element Solutions’ existing businesses, which provide advanced chemistry and materials solutions to similar high-performance industries.
EFC will bring valuable new growth vectors to our company while aligning closely with our customer footprint and culture,” Gliklich added. “We are excited to welcome Pavel Perlov and the talented EFC team to the Element Solutions family and look forward to capitalizing on our combined capabilities to deliver enhanced value to our customers and shareholders.
EFC’s Perspective: Accelerating Innovation and Global Reach
Pavel Perlov, President and Chief Executive Officer of EFC, echoed that enthusiasm, describing the transaction as a milestone that will accelerate EFC’s long-term growth strategy.
We are honored to join Element Solutions, marking a major milestone in EFC’s continued growth and commitment to excellence,” Perlov said. “This partnership represents a significant step forward for our team and our valued customers. With our shared vision for innovation, sustainable growth, and operational excellence, we will be able to accelerate product development, expand our global footprint, and deliver even greater value to the industries we serve.
Perlov also highlighted the cultural alignment between the two organizations — both companies emphasize innovation, safety, quality, and collaboration as core values. “I am incredibly proud of what our team has built over the years,” he continued. “Joining Element Solutions opens new opportunities to scale that success globally. We are energized by what lies ahead as part of this next chapter in our journey.”
Financial Impact and Transaction Details
Element Solutions expects the EFC acquisition to contribute approximately $30 million to adjusted EBITDA in 2026. The transaction will be funded through a combination of cash on hand and incremental debt.
In addition to the EFC acquisition, Element Solutions also announced on October 28, 2025, a definitive agreement to acquire Micromax from Celanese Corporation. The Micromax business, known for its conductive inks and flexible electronic materials, is expected to contribute approximately $40 million in adjusted EBITDA on a full-year basis, at accretive metals-adjusted margins.
When considered together, the EFC and Micromax transactions represent a major strategic expansion for Element Solutions across complementary markets and technologies. On a combined basis, the two acquisitions are expected to be over 7% accretive to adjusted earnings per share (EPS) in 2026. The company anticipates that, on a pro forma basis, its net debt-to-adjusted EBITDA ratio at year-end 2025 will remain comfortably below 3.0x, demonstrating Element Solutions’ continued financial discipline and strong balance sheet management.
Strengthening the Future of Element Solutions
These acquisitions underscore Element Solutions’ ongoing strategy of building a high-performance portfolio of businesses serving technology-enabled, high-growth sectors. The addition of EFC enhances the company’s exposure to markets with strong secular growth trends, while providing opportunities to leverage ESI’s global infrastructure, R&D expertise, and customer relationships.
With EFC’s high-purity gases and recovery systems and Micromax’s advanced materials for printed electronics, Element Solutions continues to evolve as a key enabler of next-generation manufacturing technologies — from semiconductors and aerospace systems to renewable energy and sustainable industrial processes.
Together, these moves position Element Solutions to deliver superior growth and returns well into the future,” Gliklich concluded. “We’re investing in businesses that make the world’s most critical technologies possible.
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