08.28.17
Ingevity Corporation has reached an agreement with Georgia-Pacific to acquire Georgia-Pacific’s pine chemicals business for a cash purchase price of $315 million. The acquisition is subject to certain regulatory approvals and other customary closing conditions, and Ingevity expects to close on the transaction in late 2017.
Approximately 90 percent of its revenues are in North America. The business manufactures the majority of its products at a Georgia-Pacific site in Crossett, Arkansa, and employs approximately 70 people.
In purchasing the pine chemicals business, Ingevity will acquire the pine chemicals-related assets at the Crossett plant, saleable inventory, customer lists and the book of business, as well as various patents and trade names associated with acquired product lines.
Separately, Ingevity will enter into a 20-year, market-based crude tall oil (CTO) supply contract with certain of Georgia-Pacific’s paper mill operations.
Ingevity will not acquire Georgia-Pacific’s merchant CTO or crude sulfate turpentine business which will be retained and operated by Georgia-Pacific.
Approximately 90 percent of its revenues are in North America. The business manufactures the majority of its products at a Georgia-Pacific site in Crossett, Arkansa, and employs approximately 70 people.
In purchasing the pine chemicals business, Ingevity will acquire the pine chemicals-related assets at the Crossett plant, saleable inventory, customer lists and the book of business, as well as various patents and trade names associated with acquired product lines.
Separately, Ingevity will enter into a 20-year, market-based crude tall oil (CTO) supply contract with certain of Georgia-Pacific’s paper mill operations.
Ingevity will not acquire Georgia-Pacific’s merchant CTO or crude sulfate turpentine business which will be retained and operated by Georgia-Pacific.
