North Charleston, South Carolina, USA 15 November 2017 -- (From news reports) -- Government antitrust officials are seeking more details about Ingevity's planned buyout of a competing business, though the deal is still expected to be approved.
Ingevity Corp. said the Federal Trade Commission asked for additional information and materials about the $315 million acquisition of a Georgia-Pacific Corp. subsidiary.
The agency made its Nov. 9 request under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, according to the company. Ingevity described it as a "standard part of the regulatory approval process for transactions of this type" and that it will "continue to work closely and cooperatively" with the commission.
The company said the closing could be pushed back until the first quarter of 2018 rather the end of 2017, as originally projected.
Ingevity announced in August that it was purchasing Georgia-Pacific's pine chemicals unit in an all-cash deal. The business it is buying makes ingredients used in adhesives, cleaners, paints, inks and other products and are sold to mostly North American customers in the metalworking, mining, oilfield, packaging and rubber processing industries.
The sale marked Ingevity's first major acquisition since becoming an independent company about 18 months ago. The Virginia Avenue company also manufactures chemicals from pine trees.
The Georgia-Pacific purchase would give Ingevity a plant in Crossett, Ark., with about 70 workers. The sale includes inventory, customer lists, patents and trade names.
As part of the transaction, Georgia-Pacific's paper mills will supply Ingevity with a pine-based raw chemical called crude tall oil under a 20-year contract.
Ingevity was spun off as a standalone, publicly traded company in mid-2016 by WestRock Co., which acquired the business through its purchase of MeadWestvaco Corp. in 2015. It previously was called MWV Specialty Chemicals.
Ingevity operates 25 locations worldwide and employs about 1,500 workers.