Ingevity explores strategic alternatives amid strong 2024 results

Ingevity Corporation, a global leader in specialty chemicals and materials based in North Charleston, South Carolina, U.S.A., has announced plans to explore strategic alternatives for its Performance Chemicals Industrial Specialties product line and the associated North Charleston crude tall oil (CTO) refinery. This move reflects the company’s continued focus on optimising its portfolio and maximising shareholder value.

Ingevity’s Industrial Specialties division serves a range of markets, including paper chemicals, rubber, adhesives, oilfield, lubricants, and industrial intermediates. However, the company has decided to concentrate on higher-growth and higher-margin areas within its portfolio.

“Exiting most of the Industrial Specialties product line will strengthen our Performance Chemicals segment and improve earnings and cash flow,” said Luis Fernandez-Moreno, Ingevity’s interim president and CEO. He emphasised the company’s commitment to ensuring seamless service for existing customers throughout the transition.

The strategic review excludes Ingevity’s Road Technologies product line and certain lignin-based products, which will remain part of the Performance Chemicals segment. A final decision on the divestment process is expected by the end of 2025.

Ingevity also announced its preliminary financial results for 2024, which remain subject to audit. The company reported:

• Net Sales: Approximately USD1.40 billion.
• Adjusted EBITDA: USD360 million, reaching the high end of previous guidance.
• Free Cash Flow: Exceeding USD40 million.

Strong performance in the Performance Materials segment and improved results in Performance Chemicals contributed to these figures. The company projects Adjusted EBITDA of more than USD400 million for 2025, excluding potential impacts from the strategic review.