Solstice Advanced Materials designs a global treasury model at speed

Best in Class Treasury Solution in EMEA

Highly Commended Winner

Solstice Advanced Materials

Photo of Thomas Condon, Citi, Georgios Vasilikas, Peter Bartok and Tosca Simpelo, Solstice Advanced Materials.

Ashish Saraogi

Treasurer

Peter Bartok

Head of EMEA Treasury

Georgios Vasilikas

Treasury Manager

Tosca Simpelo

Sr Treasury Analyst

Ireland and USA

Solstice Advanced Materials, Inc. is an American specialty materials company, based in Morris Plains, New Jersey, that was formed on 30th October 2025, as a spin-off of Honeywell’s specialty materials business.

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The challenge

Following its spin-off from Honeywell, Solstice Advanced Materials, as a newly independent corporate, faced the challenge of building a standalone global treasury function from scratch. During the transition period, Solstice needed to establish legal entities, banking infrastructure, liquidity management frameworks and treasury governance in parallel, within a highly compressed timeline.

The company operates across multiple countries and currencies, creating significant complexity around cash fragmentation, FX risk and working capital efficiency. Solstice required a best in class treasury architecture from inception, to support the operational independence, capital efficiency and governance requirements of a public-facing standalone entity.

The solution

35 standalone accounts were in place across 13 countries and 14 legal entities. Each was backed by intraday overdraft facilities to ensure uninterrupted collections and payments through the transition. Solstice immediately embarked on implementing a greenfield global liquidity and treasury architecture designed to deliver full operational independence from day one.

A major milestone was the go live of the multi-currency notional pool (MCNP) in February 2026, just four months after Solstice’s separation from Honeywell completed in October 2025.

At the centre of the model is an Irish treasury centre acting as the group’s in-house bank (IHB), integrating end-of-day target balancing, multi-bank sweeping, and multi-currency notional pooling to centralise liquidity while ensuring local operational continuity.

Automated end-of-day sweeps consolidate EMEA liquidity and, through intercompany loans, a significant portion of APAC cash into the Solstice Advanced Materials Ireland currency header accounts. This provides real-time visibility, control, and capital-efficient utilisation.

Crucially, the structure allows all surplus liquidity to be centralised and invested, maximising yield through governed access to money market funds.

Challenges, such as designing intercompany lending frameworks and managing regulatory constraints, were overcome through close collaboration between treasury, tax and legal. This enabled Solstice to deliver a fully centralised, scalable treasury model within months of independence.

Best practice and innovation

Right after the split, the company established an Irish in-house bank as its governance and funding hub, giving unified visibility and control across 13 countries. Achieving this degree of centralisation at the point of separation is rare for a newly carved-out corporate.

Solstice’s experience is a model that demonstrates what is possible when treasury is brought to the centre of a strategic transformation. Solstice did not simply separate from its parent, it launched as an independent company with a treasury model operating at a level of sophistication that many more mature corporates take years to achieve.

Key benefits

Cost savings.
Process efficiencies.
Return on investment (ROI).
Exceptional implementation (budget/time).
Future-proof solution.
Improved visibility.
Funding and investing automation.
Manual intervention reduced.

The primary aim was to deliver a fully operational, capital efficient treasury organisation aligned with the separation timeline. Upon completion of the spin, Solstice had a complete liquidity structure, integrated banking model and governance framework capable of supporting global operations from the outset.

The solution has surpassed its original objectives. Solstice now has real time visibility over regional liquidity, with 80% of EMEA cash centralised within the MCNP. Idle cash has been significantly reduced, contributing to a ~US$75m reduction in EMEA’s reliance on loan funding from outside the region. Offsetting long currency positions against short expense currencies has improved interest outcomes, and central investment through the Irish IHB has generated an annualised uplift of ~US$1.5m in interest income. Operational efficiency has also strengthened: automated sweeping and centralised funding processes materially reduce manual workload for local finance teams each month.

Solstice’s treasury was positioned as a strategic function from the outset. If it failed to deliver, the business would have faced immediate and visible disruption. The team had to design and stand up an entire global treasury model at speed.

The operational impact was equally important. The business continued without interruption. Suppliers were paid on time, employees received payroll without issue and customers experienced no change in service. This stability mattered. The spin-off affected thousands of employees and thousands of customers, and treasury’s execution ensured the transition felt controlled and seamless across the organisation.

Tom Condon

Payments and Liquidity Sales Vice President, UK & Europe, Citi

Rizwana Ameer

Global Network Banking Director, Ireland, Citi

Congratulations to the Solstice team on delivering a standout treasury solution amid a complex spin off. The transition to a best in class liquidity model within a compressed timeframe reflects clear strategic intent and disciplined execution.

This programme stands out as treasury was firmly in the driving seat, shaping the structure, governance and operating model, including a centrally managed multi-currency liquidity structure. This approach translated quickly into measurable financial outcomes and operational resilience, with Citi supporting and advising the programme from its early stages. This is a compelling example of how treasury can lead successful separations and establish a strong blueprint for future spin-offs.

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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards

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