Georgia-Pacific sells its pine chemicals business to Ingevity in the US

Georgia-Pacific reached an agreement to sell its pine chemicals business to Ingevity for USD 315 million, including certain pine chemicals-related assets at the Crossett, Arkansas plant in the US. The acquisition is subject to regulatory clearance and Ingevity and Georgia-Pacific expect to close on the transaction in late 2017.

According to the announcement, Ingevity will enter into several contract manufacturing arrangements for oilfield and mining products currently produced at other Georgia-Pacific facilities. The parties will also separately enter into a 20-year, market-based crude tall oil (CTO) supply contract.

Ingevity will not acquire the merchant crude tall oil or crude sulfate turpentine business; this business will be retained and operated by Georgia-Pacific. In addition to these two pine-related segments, Georgia-Pacific’s non-pine chemicals businesses, which serve mainly the wood panels and general industrial markets, are not impacted by the sale. GP will continue to operate our ten chemical facilities within the Americas to service our customers in these segments.

 

Rick Urschel, president, Georgia-Pacific Chemicals, commented:

“Although the pine chemical business has been profitable and our employees have done a great job running safe, productive assets and meeting our customers’ needs, we believe this sale to an established player in the industry is in the best interest of our customers and stakeholders.”

Ingevity provides specialty chemicals and high-performance carbon materials and technologies that help customers solve complex problems. These products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions. Through a team of talented and experienced people, Ingevity develops, manufactures and brings to market products and processes that purify, protect and enhance the world around us. Headquartered in North Charleston, S.C., Ingevity operates from 25 locations around the world and employs approximately 1,500 people.

Earlier Georgia-Pacific acquired PAX Corrugated Products in the US.

About Georgia‑Pacific:

The company has 13 plywood facilities across the United States, two of which are located in Madison and Warm Springs, Georgia. The company employs approximately 6,200 people directly in the state of Georgia, with approximately 450 people located at the Madison operations.

Source: Woodbizforum