Ingevity Corp. (NYSE: NGVT) has reached a deal to acquire the pine chemicals business from Georgia-Pacific for $315 million in cash. The buyer will acquire Georgia-Pacific’s pine chemicals manufacturing plant based in Crossett, Arkansas.

The pine chemicals business manufactures pine-based tall oil fatty acids, tall oil rosin, and tall oil rosin esters. The target’s products are used in adhesives, cleaners, paints and coatings, inks, metalworking, mining, oilfield, packaging, and rubber processing. Ingevity will gain the pine chemicals-related assets at the Crossett plant, its saleable inventory, various patents and trade names, customer lists, and the book of business. Georgia-Pacific, a subsidiary of Koch Industries, is a U.S. paper and pulp manufacturing company based in Atlanta, Georgia.

“Ingevity’s and Georgia-Pacific’s pine chemicals businesses are very complementary,” states Ingevity CEO Michael Wilson.

Ingevity expects to derive nearly $11 million in synergies as part of the deal, mostly due to manufacturing optimization among three chemicals plants and logistics costs. Headquartered in North Charleston, South Carolina, the buyer also produces specialty chemicals and carbon materials. Ingevity will not acquire Georgia-Pacific’s crude tall oil or crude sulfate turpentine business. However, the buyer will enter into a 20-year supply contract with Georgia-Pacific’s paper mill operations.

The middlle-market has been seeing its fair share of chemical deals including: Littlejohn’s purchase of Cornerstone Chemical Co. from HIG Capital; KMG Chemicals Inc.’s (NYSE: KMG) acquisition of Flowchem; the Jordan Co. LP’s purchase of DuBois Chemicals Inc.,; Maroon Group LLC’s acquisition of Lincoln Fine Ingredients; and Platte River's investment in MFG Chemical.

Citi (NYSE: C) is serving as financial adviser to Ingevity, while Kirkland & Ellis LLP is acting as legal counsel. Wells Fargo Securities LLC (NYSE: WFC), J.P. Morgan Securities LLC (NYSE: JPM), and Merrill Lynch led a bank credit facility for the Ingevity and Georgia-Pacific deal.