Ingevity Completes Acquisition of Georgia-Pacific’s Pine Chemicals Business
The company has also entered into a 20-year, market-based crude tall oil supply contract with certain of Georgia-Pacific’s paper mill operations.
Ingevity Corp. recently announced it has completed the acquisition of Georgia-Pacific’s pine chemicals business for a cash purchase price of $310 million. The company expects to derive approximately $11 million in net synergies as a result of the acquisition, which are expected to be attained through lower logistics costs, manufacturing optimization among the combined three chemicals plants and leveraged procurement costs.
In purchasing the pine chemicals business, Ingevity has acquired the pine chemicals-related assets at Georgia-Pacific’s Crossett, Ark., plant, saleable inventory, customer lists and the book of business, as well as various patents and trade names associated with acquired product lines. Separately, the company has entered into a 20-year, market-based crude tall oil supply contract with certain of Georgia-Pacific’s paper mill operations.