ATLANTA, Aug. 22, 2017 /PRNewswire/ -- Georgia-Pacific LLC announced today that it 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.
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.
"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," said Rick Urschel, president, Georgia-Pacific Chemicals.
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 our ten chemical facilities within the Americas to service our customers in these segments.
About Georgia-Pacific Based in Atlanta, 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. Our familiar consumer brands include Quilted Northern®, Angel Soft®, Brawny®, Dixie®, enMotion®, Sparkle®, Mardi Gras®, Vanity Fair®, and STAINMASTER™ household cleaning products. Georgia-Pacific has long been a leading supplier of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers. Its GP Harmon Recycling subsidiary is among the world's largest recyclers of paper, metal and plastics. The company operates approximately 200 facilities and employs approximately 35,000 people directly, and creates nearly 92,000 jobs indirectly. For more information, visit: GP.com.