Georgia-Pacific LLC announced 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 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.