Ingevity sells North Charleston refinery assets to Mainstream for $110M, enhancing margins, reducing debt, and fostering sustainable long-term partnership.
Ingevity Corporation (NYSE: NGVT) has announced that it has signed a definitive agreement to divest its North Charleston crude tall oil (CTO) refinery assets and a major portion of its Performance Chemicals Industrial Specialties business to Mainstream Pine Products, LLC (Mainstream). The transaction, structured as an all-cash deal, is expected to yield approximately $110 million in net after-tax proceeds upon closing, with an additional potential contingent payment of up to $19 million. This contingent payment will depend on the achievement of specific future performance milestones. Subject to customary regulatory and contractual closing conditions, the transaction is anticipated to be completed by early 2026.
Dave Li, President and CEO of Ingevity, emphasized that the divestiture represents a pivotal step in reshaping the company’s portfolio. According to Li, the transaction will help reduce portfolio volatility, bolster margins and cash flow, and create greater flexibility for future strategic initiatives. He further noted that proceeds from the sale would be utilized to accelerate debt reduction and enhance Ingevity’s capital allocation options. Li also reiterated the company’s commitment to continuing its broader portfolio review, with the dual goals of achieving sustainable growth and improving profitability.
The assets being sold are located at Ingevity’s North Charleston, South Carolina, manufacturing site, where its Performance Chemicals operations are based. Importantly, this divestiture will not affect the production of Ingevity’s Road Technologies product line or certain lignin-based dispersants that continue to be manufactured at the facility.
As part of the agreement, Ingevity and Mainstream will establish several ongoing partnerships. These include a supply agreement under which Mainstream will provide specific refinery products to support Ingevity’s Road Technologies business. Additionally, a toll-manufacturing agreement will allow Ingevity to use its non-refinery assets in North Charleston to derivatize certain Industrial Specialties products on behalf of Mainstream. The two companies will also enter into a reciprocal operating arrangement, whereby Ingevity will deliver essential operational services to Mainstream at the CTO refinery following the close of the transaction.
Li expressed his gratitude to the employees, past and present, who contributed to the success of Ingevity’s Industrial Specialties product line. He described Mainstream as a natural successor to carry the business forward and highlighted the potential for a mutually beneficial long-term relationship between the two organizations.
Mainstream’s President and CEO, Rob Helwick, also shared his perspective, stating that it was an honor to continue the legacy built by Ingevity’s team. He praised the dedication and expertise of employees and noted the shared commitment between the companies to use renewable raw materials. Helwick emphasized Mainstream’s goal of maintaining a sustainable approach while delivering reliable, high-quality products to customers and building a lasting, collaborative partnership with Ingevity.
