Ingevity Corporation has went into a definitive agreement to sell its North Charleston CTO refinery assets and the majority of its Performance Chemicals Industrial Specialties product line to Mainstream Pine Products.
The all-coins transfer will result in net, after tax, proceeds at final of about $110 million plus a capability contingent payment ranging from $0 to $19 million, that’s concern to the accomplishment of future business overall performance milestones. The transaction is subject to standard and agreed-upon closing conditions and is anticipated to shut by early 2026.
“This transaction denotes a great milestone for Ingevity, decreasing portfolio volatility, strengthening our margin and cash glide profile and improving future strategic flexibility. The transaction proceeds will allow us to increase deleveraging and offering extra capital allocation flexibility,” stated Ingevity president and CEO, Dave Li. “As we move ahead, we continue to improve our portfolio overview with a target point on sustainable growth and profitability.”
The CTO refinery assets being obtained via Mainstream are co-placed at the campus of Ingevity’s North Charleston, South Carolina, Performance Chemicals production facility. The transaction isn’t predicted to impact manufacturing of Ingevity’s Road Technologies product line nor sure lignin-primarily based dispersants which can be produced at Ingevity’s North Charleston plant.
“I want to take this opportunity to thank the past and gift Ingevity employees who’ve contributed to Ingevity’s Industrial Specialties product line through the years,” introduced Li. “We believe Mainstream is a natural next proprietor to optimize the business going ahead, and we anticipated this can be a jointly beneficial relationship between our respective corporations.”
