Ingevity completed the $110 million sale of its North Charleston CTO refinery and Industrial Specialties business to Mainstream Pine Products.
Ingevity Corporation has confirmed the successful completion of the previously announced divestment of its North Charleston crude tall oil (CTO) refinery assets along with the majority of its Performance Chemicals Industrial Specialties product portfolio. The assets have been sold to Mainstream Pine Products, LLC in an all-cash transaction that represents a significant milestone in Ingevity’s ongoing corporate transformation strategy.
Under the terms of the agreement, Ingevity received $110 million in cash at closing. In addition to this upfront payment, the company may also receive contingent consideration ranging from zero to as much as $19 million. This additional amount is dependent on the achievement of certain predefined business performance milestones over a specified period. As is standard for transactions of this nature, the final consideration remains subject to customary post-closing adjustments.
Commenting on the completion of the transaction, Ingevity President and Chief Executive Officer Dave Li highlighted its strategic importance for the company’s future direction. He emphasized that the sale represents a key step in simplifying Ingevity’s operating model and reinforcing its ambition to position itself as a best-in-class specialty materials company. While acknowledging the long-standing contribution of the Industrial Specialties business to Ingevity’s heritage, Li expressed confidence that the business is well positioned to succeed under the ownership and leadership of Mainstream Pine Products.
This divestment is a pivotal element of Ingevity’s broader portfolio reshaping initiative, which the company detailed during its investor event held on December 8. By exiting its remaining CTO-based product lines, Ingevity is deliberately reducing exposure to lower-margin or less strategically aligned operations. At the same time, the company is retaining and continuing to invest in its Pavement Technologies business and select lignin-based dispersant products, which remain central to its value proposition.
The strategic refocusing allows Ingevity to concentrate resources, capital, and management attention on higher-margin specialty applications, particularly in the activated carbon and pavement technologies segments. These areas are viewed as offering stronger growth potential, greater differentiation, and improved long-term returns compared with the divested operations. Management believes that this sharper focus will enhance operational efficiency and strengthen the company’s competitive positioning in its core markets.
The crude tall oil refinery assets included in the transaction are co-located at Ingevity’s Performance Chemicals manufacturing campus in North Charleston, South Carolina. These facilities have historically supported the production of CTO-based products used across a range of industrial applications. With the sale now complete, ownership and operational responsibility for these assets transition to Mainstream Pine Products, which specializes in pine-based chemicals and related downstream products.
For Ingevity, the transaction not only provides immediate liquidity through the cash proceeds but also aligns with its longer-term objective of building a more streamlined, resilient, and higher-performing portfolio. By simplifying its business structure and narrowing its strategic focus, the company aims to improve financial performance, reduce complexity, and create greater value for shareholders.
Overall, the completion of this sale marks a defining step in Ingevity’s evolution. It underscores management’s commitment to disciplined portfolio management and strategic clarity, while also ensuring that the divested Industrial Specialties business has the opportunity to continue growing under an owner whose core expertise closely aligns with those assets.
