Solstice's $14.5B ESI Bet: Why Cramer Called It a 'Really Smart Deal'

Solstice's $14.5 billion acquisition of Element Solutions Inc (NYSE:ESI) is a bet on the electronics chemicals cycle, not just a consolidation play. The deal, announced after ESI shares had already run 59% over the past year, values the company at a premium that both Truist and UBS had already priced into their targets.

Truist raised its ESI price target to $47 from $38 on April 30, keeping a Buy rating after what the bank called a strong first quarter driven by the electronics business. UBS followed with a $52 target, up from $43. Both banks cited the same catalyst: demand for specialty chemicals used in semiconductor manufacturing and industrial coatings.

Jim Cramer called the Solstice acquisition