Georgia-Pacific LLC of Atlanta announced Tuesday that it will sell its pine chemicals business to Ingevity of North Charleston, South Carolina, for $315 million, including certain pine chemicals-related assets at its Crossett plant.
The Crossett plant has several other chemical businesses, but about 50 or 60 people work in its pine chemicals division, spokesman Rick Kimble told Arkansas Business. He said the companies didn't know yet how they would be affected because the deal is in its early stages, but he speculated that most of those employees would transition to working for Ingevity.
The acquisition is subject to regulatory clearance. The companies expect to close on the deal later this year.
Separately, Ingevity will enter into several contract manufacturing arrangements for oilfield and mining products currently produced at other GP facilities. The companies will also separately enter into a 20-year, market-based crude tall oil supply contract.
"Although the pine chemical business has been profitable and our employees have done a great job running safe, productive assets and meeting our customers' needs, we believe this sale to an established player in the industry is in the best interest of our customers and stakeholders,"
Georgia-Pacific Chemicals President Rick Urschel said in a news release.
Ingevity will not acquire the merchant crude tall oil or crude sulfate turpentine business; those will be retained and operated by GP.
GP's non-pine chemicals businesses, which serve mainly the wood panels and general industrial markets, will not be impacted by this sale.
GP will also continue to operate its ten chemical facilities within the Americas.