Industry News

Georgia Pacific Pine Chemicals Business Acquisition by Ingevity

Published on 2018-03-13. Author : SpecialChem

TAGS:  Natural-based Adhesives    

Georgia Pacific Business Acquisition
Ingevity pronounced the complete acquisition of Georgia-Pacific's pine chemicals business for a cash purchase price of $310 million.

Ingevity expects to obtain approximately $11 million in net synergies as a result of the acquisition, which are expected to be gained through lower logistics costs, manufacturing optimization among the combined three chemicals plants and leveraged procurement costs.

Acquisition of the Pine Chemicals-Related Assets

While purchasing the pine chemicals business, Ingevity has also acquired the pine chemicals-related assets at Georgia-Pacific’s Crossett, Ark. plant-

  • Saleable Inventory Customer Lists

  • Book of Business, as well as

  • Various Patents and Trade Names Associated with Acquired Product Lines.

Products Manufactured by Pine Chemical Business

Georgia-Pacific’s pine chemicals business manufactures and sells pine-based tall oil fatty acids, tall oil rosin, and tall oil rosin esters used in adhesives, cleaners, paints and other coatings, inks, metalworking, mining, oilfield, packaging and rubber processing.

Michael Wilson, Ingevity president and CEO said, “This acquisition will provide a stronger platform from which we will accelerate the profitable growth of our Performance Chemicals segment.” 

He also added “With the addition of Georgia-Pacific’s broader technologies and product platforms, we will add scale and competitiveness to this segment, and create significant value for our shareholders.”

Contract with Georgia-Pacific’s Paper Mill Operations

Separately, Ingevity has entered into a 20-year, market-based crude tall oil (CTO) supply contract with certain of Georgia-Pacific’s paper mill operations.

Source: Ingevity
Omya Calcium Carbonates
Naphthenic Oils For Better Adhesion
Channel Alerts

Receive weekly digests on hot topics

Back to Top