Activist investor Starboard Value disclosed a stake in Solstice Advanced Materials on October 20, urging the Honeywell spin-off to cut approximately $100 million in costs and concentrate on its refrigerants and nuclear materials businesses. Starboard CEO Jeffrey Smith outlined the proposals at the 13D Monitor Active-Passive Investor Summit in New York, arguing that the specialty materials company was trading well below its underlying value.
Smith said Solstice had strong core businesses but had yet to convince investors that management could deliver their full earnings potential. He called for tighter cost control and stronger execution in existing operations rather than another push toward large-scale acquisitions. Starboard did not disclose the size of its holding during the presentation, and Solstice has not adopted the proposed cost reductions.
Solstice became an independent publicly traded company following its separation from Honeywell in 2025. Its operations include refrigerants, nuclear materials and other specialty chemicals. The shares initially performed strongly after the separation but had fallen roughly 30% from their June 30 closing peak by the time Starboard made its holding public.
The company's terminated acquisition agreement with Element Solutions has also drawn attention to its strategy. Solstice announced the proposed $14.5 billion cash-and-stock transaction on July 6, seeking greater exposure to semiconductor and data center materials, but the companies terminated the agreement on August 27. The decision followed feedback from shareholders of both businesses. Starboard's proposals have renewed scrutiny of how Solstice allocates capital and manages its existing portfolio.
Solstice said it would review Starboard's presentation and engage with the investor. The company has not announced a new $100 million cost reduction programme or a restructuring decision.
