Ingevity Corp Files 8-K on Exit Costs

Ticker: NGVT · Form: 8-K · Filed: 2024-07-31T00:00:00.000Z

Sentiment: neutral

Topics: restructuring, disposal, financial-reporting

Related Tickers: NGVT

TL;DR

NGVT filed an 8-K for exit/disposal costs. Details to follow.

AI Summary

On July 29, 2024, Ingevity Corporation (NGVT) filed an 8-K detailing costs associated with exit or disposal activities. The filing also included a Regulation FD disclosure and financial statements. Specific dollar amounts and further details regarding these activities were not immediately available in the provided text.

Why It Matters

This filing indicates Ingevity is undergoing restructuring or divesting assets, which could impact future financial performance and operational focus.

Risk Assessment

Risk Level: medium — Disposal activities can signal financial strain or strategic shifts that may carry inherent risks.

Key Players & Entities

FAQ

What specific activities are associated with the exit or disposal costs reported by Ingevity Corp?

The provided text of the 8-K filing indicates that the company is reporting on 'Cost Associated with Exit or Disposal Activities' but does not specify the nature of these activities.

When was this 8-K filing submitted to the SEC?

The filing was submitted on July 31, 2024, and the date of the earliest event reported is July 29, 2024.

What is Ingevity Corporation's primary business sector?

Ingevity Corporation is classified under the 'CHEMICALS & ALLIED PRODUCTS' sector with SIC code 2800.

Where is Ingevity Corporation headquartered?

Ingevity Corporation's business address is listed as 4920 O'Hear Avenue, Suite 400, North Charleston, SC 29405.

Does the filing provide any financial statements or exhibits?

Yes, the filing explicitly lists 'Financial Statements and Exhibits' as an item of information included in the report.

Filing Stats: 1,443 words · 6 min read · ~5 pages · Grade level 16.5 · Accepted 2024-07-31 16:24:21

Key Financial Figures

Filing Documents

05. COST ASSOCIATED WITH EXIT OR DISPOSAL COSTS

ITEM 2.05. COST ASSOCIATED WITH EXIT OR DISPOSAL COSTS. On July 31, 2024, Ingevity Corporation ("Ingevity" or the "Company") announced additional steps to advance the Company's strategic repositioning of its Performance Chemicals segment for sustained improved profitability. The Company plans to transition the refining of oleo-based products manufactured for the Company's Performance Chemicals segment from its Crossett, Arkansas manufacturing plant (the "Crossett Plant") to its North Charleston, South Carolina manufacturing plant. In connection with this action, on July 29, 2024, the Board of Directors approved the closure of the Crossett Plant, as well as additional corporate and business cost reduction actions. Ingevity plans to close its Crossett Plant in August 2024 and will continue to evaluate options for the site. These actions represent necessary steps in the Company's previously announced repositioning of the Performance Chemicals segment to improve business performance. The Company expects to realize net operational savings of approximately $20 million to $25 million per year from the closure of the Crossett Plant, as well as annual savings of approximately $10 million from the corporate and business-related cost reduction actions. The Company expects to realize the full benefit of these savings beginning in 2025. As a result of these actions, Ingevity expects to incur aggregate charges of approximately $100 million, consisting of approximately $65 million in asset-related charges, approximately $10 million in severance and other employee-related costs and approximately $25 million in other restructuring costs, which include decommissioning, dismantling and removal charges and contract termination costs. The Company expects approximately $65 million of the total charges to be non-cash. The majority of non-cash charges and 50-60 percent of cash charges are expected to be recognized by the first half of 2025. The charges the Company currently expects to

01. REGULATION FD DISCLOSURE

ITEM 7.01. REGULATION FD DISCLOSURE. On July 31, 2024, Ingevity issued a press release related to the planned closure of the Crossett Plant. A copy of the press release is filed as Exhibit 99.1 hereto and incorporated herein by reference. The information in this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 , as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains "forwardlooking statements" within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words "will," "plans," "intends," "targets," "expects," "outlook," "guidance," "believes," "anticipates" or similar expressions. Forwardlooking statements may include, without limitation, anticipated timing, charges and costs of any current or future repositioning of our Performance Chemicals segment, including the oleo-based product refining transition, Crossett, Arkansas plant closure, and the previously announced closure of our DeRidder, Louisiana plant; the potential benefits of any acquisition or investment transaction, expected financial positions, guidance, results of operations and cash flows; financing plans; business strategies and expectations; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and costreduction initiatives, plans and objectives; litigation-related strategies and outcomes; and markets for securities. Actual results could differ materially from the views expressed. Factors that could cause actual results to materially differ from those contained in the forwardlooking statements, or that could cause other forwardlooking statements to prove incorrect, include, without limitation, charges, costs or actions, including adverse legal or regulatory actions, resulting from, or in connection with, the current or future repositioning of our Performance Chemicals segment, including the oleo-based product refining transition, Crossett, Arkansas plant closure, and the previously announced closure of our DeRidder, Louisiana plant; losses due to resale of crude tall oil at less than we paid for it; adverse effects from general global economic, geopolitical and financial conditions beyond our control, i

01. FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. Exhibit No. Description of Exhibit 99.1 Press Release, dated July 31, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * The exhibits and schedules to such agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INGEVITY CORPORATION (Registrant) By: /S/ MARY DEAN HALL Mary Dean Hall Executive Vice President and Chief Financial Officer Date: July 31, 2024

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