Ingevity Corp. from North Charleston has already had a busy week.
The company announced on Tuesday that it was buying two companies in a $325 million cash transaction and investing $60 million to acquire a stake in another. Additionally, the company announced record net sales of $419.9 million in its second quarter report, with net income of $59.8 million, a 35% increase over the same period. last year.
Ingevity, which provides products including specialty chemicals, high-performance carbon-based materials and engineered polymers, has reached an agreement to buy a private company Ozark Materials LLC and Ozark Logistics LLC in the $325 million deal. As part of the $60 million investment agreement, Ingevity will acquire a stake in Nexeon Limitedwhich the company called a strategic move to establish its presence in the electric vehicle market.
Ozark Materials produces pavement marking materials including thermoplastic pavement markings, water-based road paints, and preformed thermoplastics. The company provides specialty materials for highway applications throughout the United States and Canada. Its products include glass beads that make road lines reflective. Ozark Logistics is a logistics provider operating a dedicated fleet of vehicles located in five states. Ozark Materials is headquartered in Greenville, Alabama, and operates through four manufacturing sites and one distribution center.
Ingevity expects Ozark Materials to generate revenue of approximately $150 million and earnings before interest, taxes, depreciation and amortization margins of approximately 20% in calendar year 2023, according to a press release.
“Today’s announcement represents an important milestone for Ingevity, strengthening our position in the paving construction industry while moving us one step downstream where we can better serve our end customers,” said John Fortson. , president and chief executive officer of Ingevity, in the press release on Tuesday. “Ozark Materials has established itself as a leading player in the pavement marking materials industry, which is expected to continue to benefit from several macro-level tailwinds, including increased infrastructure spending and the need for more road markings to support autonomous vehicles.”
In addition to leading Ingevity into the electric vehicle market, Nexeon’s investment will expand growth opportunities for its activated carbon business, the press release said.
UK-based Nexeon designs silicon-based anode materials that improve the performance of lithium-ion batteries for electric vehicles and consumer electronics.
Ingevity’s funding will allow Nexeon to further develop its proprietary next-generation silicon anode material, NSP-2, and facilitate the construction of manufacturing facilities for the commercialization of Nexeon’s products, the statement said. Press.
Nexeon claims that its customers report that the NSP-2 offers a dramatic improvement in lithium-ion battery performance while reducing battery weight.
“With an astonishing energy density per gram four times greater than that of conventional graphite anodes, Nexeon’s insertion technology will deliver increased vehicle range and faster charging of lithium-ion electric vehicles,” says the communicated.
“Today’s announcement marks an important milestone in our company’s history and underscores Ingevity’s long-term vision for growth and its commitment to exploring value-added applications for our activated carbon on expanding markets like electric vehicles,” Fortson said in the statement. “Nexeon has established itself as an innovation leader in what will likely be a rapidly growing space for years to come, and we are thrilled to partner with them to advance their breakthrough patented technologies.”
As part of its investment, Ingevity and Nexeon have committed to joint development of future products involving the use of Ingevity’s activated carbon and intend to enter into a long-term supply agreement between the parties. the press release. Ingevity will be represented on the Nexeon Board of Directors by Erik Ripple, Ingevity’s Director of Growth and Innovation.
“Ingevity’s commitment to innovation and expertise in activated carbon technology makes the company an ideal partner as we produce our next-generation product in volume and help our customers achieve their commercialization goals. “Nexeon CEO Scott Brown said in the statement. “Ingevity’s core sustainability profile also aligns with our goal to support the transition to carbon neutral technology, protect our environment and improve quality of life.
Nexeon is a battery materials company that develops and produces silicon materials for the next generation of rechargeable lithium-ion batteries.
Contact Ross Norton at 864-720-1222.
