Ingevity to buy England-based chemical business for $675M

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North Charleston-based chemical manufacturer Ingevity Corp. plans to acquire an England-based division of specialty chemicals company Perstorp in a cash deal valued at $675 million, the company announced.

The acquisition is subject to regulatory approvals, and Ingevity expects to close on the transaction in the first quarter.

Ingevity will acquire Perstorp’s caprolactone division, called Capa, including a manufacturing facility in Warrington, England, that employs 90 people.

The Capa facility makes chemicals and components — caprolactone, caprolactone polyols, caprolactone thermoplastics, caprolactone lactides and hexanediol — used in adhesives, bioplastics, coatings, elastomers and resins.

The chemicals are used to add wear resistance, chemical resistance, UV-resistance, gloss, adhesion, low-temperature flexibility and other properties to products, according to the company’s website.

According to a news release from Perstorp, Capa has annual revenues of approximately $171.3 million. Ingevity will include the business in its performance chemicals segment.

“The Capa division is a strong, market-leading business focused on high-growth, end-use applications, and as such is a complementary fit with Ingevity’s business model and capabilities,” Ingevity President and CEO Michael Wilson said in a news release.

Ingevity uses wood-based raw materials to produce chemicals and carbon materials used in a variety of applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, and automotive components that reduce gasoline vapor emissions.

The company has more than 1,600 employees at 25 locations worldwide, including a manufacturing facility at 5598 Virginia Ave. and the Ingevity Technical Center at 5255 Virginia Ave.

Ingevity plans to expand in North Charleston by building a new global corporate headquarters at 4920 O’Hear Ave. and creating at least 100 jobs. The building should open in 2020.

Ingevity, which has operated in the Lowcountry for more than 70 years, trades on the New York Stock Exchange under the NGVT symbol.