Georgia-Pacific LLC has reached an agreement to sell its pine chemicals business to Ingevity for $315 million, including certain pine chemicals-related assets at the Crossett, Arkansas plant. The acquisition is subject to regulatory clearance and Ingevity and Georgia-Pacific expect to close on the transaction in late 2017, as the company says in the press release received by Lesprom Network.
Separately, Ingevity will enter into several contract manufacturing arrangements for oilfield and mining products currently produced at other Georgia-Pacific facilities. The parties will also separately enter into a 20-year, market-based crude tall oil (CTO) supply contract.
Ingevity will not acquire the merchant crude tall oil or crude sulfate turpentine business; this business will be retained and operated by Georgia-Pacific. In addition to these two pine-related segments, Georgia-Pacific's non-pine chemicals businesses, which serve mainly the wood panels and general industrial markets, are not impacted by the sale. GP will continue to operate its ten chemical facilities within the Americas to service its customers in these segments.
Georgia-Pacific and its subsidiaries are among the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, office papers, cellulose, specialty fibers, nonwoven fabrics, building products and related chemicals.
