NGVT Agrees to Divest North Charleston CTO Refinery to Mainstream Pine

Core Viewpoint - Ingevity Corporation (NGVT) has agreed to divest its North Charleston crude tall oil (CTO) refinery assets and the majority of its Performance Chemicals Industrial Specialties product line to Mainstream Pine Products, LLC [1][9] Financial Impact - The transaction is expected to generate approximately $110 million in cash proceeds, with a contingent payment ranging from $0 to $19 million based on future business performance [2][9] - Adjusted EBITDA guidance has been reaffirmed to be between $390 million and $415 million, while sales estimates remain between $1.25 billion and $1.40 billion [5] Strategic Objectives - The divestiture aims to reduce portfolio volatility, strengthen margin and cash flow profile, and enhance future strategic optionality [3][9] - The cash proceeds will facilitate deleveraging and provide more flexibility in future capital allocation decisions [3] Operational Considerations - The sale will not impact the production of the Road Technologies product line or the lignin-based dispersants manufactured at the North Charleston plant [4] - NGVT will enter into arrangements with Mainstream, including supplying certain refinery products and collaborating on toll manufacturing and plant operating services [4] Market Performance - NGVT stock has increased by 76.7% over the past year, contrasting with a 0.4% decline in the industry [6]