Ingevity Corporation has reached a significant agreement to sell its North Charleston CTO refinery assets and majority of the Industrial Specialties product line to Mainstream Pine Products.
The transaction involves an all-cash deal with potential contingent considerations, aimed at reducing portfolio volatility, enhancing cash flow, and strategic optionality.
The sale is expected to close by early 2026, with Mainstream Pine Products supplying certain refinery products to support Ingevity's Road Technologies product line.
Strategic Divestiture
The divestiture is set to strengthen Ingevity's margin, cash flow profile, and future strategic options.
Revenue Expectation
Anticipated revenue of approximately $130 million in 2025 with EBITDA margins in the low-to-mid single digits from the assets being sold.
Reduced Exposure
Agreement significantly reduces Ingevity's exposure to crude tall oil (CTO) volatility.
- The transaction will enable Ingevity to accelerate deleveraging and provide capital allocation flexibility.
- Ingevity's focus on sustainable growth and profitability is emphasized as they review their portfolio.
- The sale marks a significant milestone by enhancing Ingevity's strategic positioning and reducing risk factors.
Ingevity's agreement to sell its refinery assets signifies a strategic move to optimize its portfolio and focus on sustainable growth. The transaction is expected to bring about positive financial outcomes and strengthen Ingevity's market position.