Ingevity president and CEO Dave Li commented: “This transaction marks a significant milestone for Ingevity, reducing portfolio volatility, strengthening our margin and cash flow profile and enhancing future strategic optionality. The transaction proceeds will enable us to accelerate deleveraging and provide additional capital allocation flexibility. As we move forward, we continue to advance our portfolio review with a focus on sustainable growth and profitability.”
The CTO refinery assets being sold are located on the campus of Ingevity’s North Charleston, South Carolina, Performance Chemicals manufacturing facility. Ingevity confirmed that production of its Road Technologies product line and certain lignin-based dispersants manufactured at the North Charleston plant will not be affected by the sale.
As part of the agreement, Ingevity and Mainstream will enter into multiple supporting arrangements. A supply agreement will ensure that Mainstream provides certain refinery products to support Ingevity’s Road Technologies line. A toll-manufacturing agreement will allow Ingevity to use its non-refinery North Charleston assets to derivatize selected Industrial Specialties products for Mainstream. Additionally, a reciprocal plant operating agreement will enable Ingevity to provide critical operating services to Mainstream at the North Charleston CTO refinery after closing.
Li added: “I want to take this opportunity to thank the past and present Ingevity employees who have contributed to Ingevity’s Industrial Specialties product line over the years. We believe Mainstream is a natural next owner to optimize the business going forward, and we expect this will be a mutually beneficial relationship between our respective companies.”
Mainstream president and CEO Rob Helwick stated: “It is an honor to continue the legacy of excellence established by the team at Ingevity, and we deeply value the relationships that have been built with customers. This legacy is a direct reflection of the remarkable operations and sales teams whose dedication, expertise and customer focus have consistently set the standard. Our team is particularly inspired by the shared commitment to renewably based raw materials, and we look forward to continuing this sustainable approach, delivering high-quality products to our customers with care and responsibility, and building a strong, enduring partnership with Ingevity.”
The transaction positions Ingevity to strengthen its financial profile while maintaining operational continuity for key product lines. For Mainstream, the acquisition represents an opportunity to expand its portfolio, leverage existing expertise, and continue delivering sustainable, high-quality chemical products to customers.
