Ingevity Corporation announced the completion of the previously disclosed sale 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 (Mainstream).

Per the terms of the agreement, the all-cash transaction includes $110 million at closing plus potential contingent consideration ranging from $0 to $19 million, subject to the achievement of future business performance milestones. The transaction is subject to customary adjustments.

“The completion of the sale of our CTO refinery assets and Industrial Specialties product line is an important step in our strategic plan to simplify and streamline our business as a best-in-class specialty materials company,” said Ingevity President and CEO, Dave Li. “The Industrial Specialties business has played a meaningful role in Ingevity’s legacy, and we are confident it will continue to thrive under Mainstream’s ownership.”

The transaction marks a pivotal step in reshaping Ingevity’s overall portfolio, as outlined at the company’s December 8 investor event. By exiting its remaining CTO-based product lines – while retaining the Pavement Technologies business and other lignin-based dispersant products – the company is sharpening its focus on higher-margin specialty applications in activated carbon and pavement technologies, consistent with its strategic priorities.

The CTO refinery assets included in the transaction are co-located on the campus of Ingevity’s North Charleston, South Carolina, Performance Chemicals manufacturing facility.