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WestRock (WRK) Stock Up on Completed Spin-off of Ingevity

WestRock Company WRK has completed the spin-off of its specialty chemicals business, Ingevity, into a new independent public company that will trade in the New York Stock Exchange under the ticker symbol "NGVT." Shares of WestRock gained 3.23% on the news.

For every six shares of WestRock common stock held as of the close of business on May 4, stockholders received one share of Ingevity common stock. WestRock stockholders received cash in lieu of fractional Ingevity shares.

Ingevity is a leading global manufacturer of specialty chemicals and high-performance carbon materials. The specialty chemicals products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants and publication inks. Ingevity is also the largest worldwide manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. After the spin-off, Ingevity will employ around 1,500 people through its U.S., Brazil and China manufacturing facilities, and cater to customers spread across 60 countries.

WestRock decided to separate Ingevity as it was not in line with the company’s business. The spin-off will better position both businesses to pursue their respective operating priorities and strategies. It will also help them to focus better on long-term growth and profitability opportunities. Ingevity channels ongoing investments to the performance chemical and activated carbon businesses as these are growth drivers that can offset near-term softness in oilfield drilling solutions.

WestRock currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Neenah Paper, Inc. NP, Clearwater Paper Corporation CLW and UPM-Kymmene Oyj UPMKY. All these stocks sport a Zacks Rank #1 (Strong Buy).

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