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Ingevity Completes Divestiture of CTO Refinery Assets to Mainstream

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Key Takeaways

  • NGVT wrapped the sale of North Charleston CTO refinery assets and most Industrial Specialties to Mainstream.
  • Ingevity receives $110M at closing, with up to $19M in contingent consideration tied to future performance.
  • It is aligned to NGVT's move to exit CTO assets and focus on Pavement Technologies.

Ingevity Corporation (NGVT - Free Report) has announced the completion of the divestiture of 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. According to the terms of the all-cash deal, Ingevity receives $110 million at closing, with the potential for $0–$19 million in contingent consideration subject to future business performance milestones and customary adjustments.

This marks a critical step in simplifying and streamlining Ingevity’s business to become the best-in-class specialty materials company. The strategic move will enable Industrial Specialties to continue to perform well under Mainstream’s ownership. The pivotal move in reshaping Ingevity’s portfolio is consistent with its action to exit its remaining CTO-based product lines and retain its Pavement Technologies business along with other lignin-based dispersant products, reinforcing its commitment to sharpen its focus on higher-margin, specialty applications.

The CTO refinery assets that are included in the divestiture are co-located within Ingevity’s Performance Chemicals manufacturing facility in North Charleston, SC. The transaction enables Ingevity’s portfolio optimization strategy and reallocation of capital and resources more effectively toward higher growth.

NGVT’s shares have gained 57.9% over the past year compared with the industry’s 0.8% growth.
 

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NGVT’s Zacks Rank & Key Picks

NGVT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

At present, AEM and KGC sport a Zacks Rank #1 (Strong Buy) each, while HMY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.87 per share, indicating a rise of 86.05%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 116.5% over the past year.

The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.06% year-over-year increase. Its shares have surged 194.3% over the past year.

The Zacks Consensus Estimate for HMY’s current fiscal-year earnings is pinned at $2.68 per share, indicating a 111.02% year-over-year increase. HMY’s shares have gained 140% over the past year.

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