Ingevity retrenches in CTO

Ingevity has entered into a definitive agreement to sell its crude tall oil (CTO) refinery at North Charleston, South Carolina, and most of its Performance Chemicals Industrial Specialties product line from the same site to Mainstream Pine Products. The transaction should close by early 2026 and is expected to yield $110 million after tax. 

The Road Technologies product line and certain lignin-based dispersants are not part of the deal and Mainstream has agreed to supply certain refinery products to support Road Technologies product line. Ingevity will continue to provide some critical operating services to Mainstream.

CEO Dave Li said that the deal “marks a significant milestone for Ingevity, reducing portfolio volatility, strengthening our margin and cash flow profile and enhancing future strategic optionality”. The company’s full-year guidance as a result of classifying the assets being sold as discontinued operations.