Ingevity Corporation (NYSE: NGVT) announced that Ingevity’s board of directors and D. Michael Wilson agreed that he would resign as president, CEO, and a director, effective 20 February. The board has appointed Ingevity chairman Richard (“Rick”) Kelson as interim president and CEO.
The board has established a CEO Search Committee, led by Michael Fitzpatrick, chair of the Nominating and Governance Committee, to identify and select a permanent president and CEO.
Ingevity said Wilson’s resignation is unrelated to the company’s financial reporting and business performance and is the result of matters relating to his personal conduct.
“Ingevity has a bright future, a deep bench of talent, and a strong leadership team,” said Kelson. “We are confident that the company will continue to execute its strategy, meet and exceed our customers’ expectations, and deliver value to shareholders. I look forward to working with the team as interim president and CEO while a search for the next leader of Ingevity is underway.”
Kelson was named chairman of Ingevity’s board of directors in 2016 and has served as chairman, president and CEO of ServCo, a strategic sourcing business, since 2009. Kelson served as CFO and executive vice president at Alcoa, Inc., for nearly a decade before retiring in 2006. He also served as a member of the board of directors of MeadWestvaco Corporation, and its predecessor, Westvaco, from 2001 to 2015. Kelson currently serves as a director of Commercial Metals Company and served as lead director from 2014 to 2019.
The company reaffirms its fiscal year 2020 guidance announced on February 3, 2020, but is providing an update on the potential impacts of the coronavirus. Ingevity estimates that first quarter 2020 financial results are expected to be impacted by USD20 million to USD30 million in revenue, and USD10 million to USD15 million in adjusted earnings before interest, taxes and depreciation (EBITDA).
“We believe we will recover some or all of the impacts of the coronavirus over the course of the year,” said John Fortson, Ingevity’s executive vice president, CFO and treasurer. “These estimates assume a slowdown of the coronavirus public health crisis by the end of the first quarter — however, this is a very fluid situation that we are monitoring closely.”
Ingevity provides specialty chemicals, high-performance carbon materials and engineered polymers that purify, protect, and enhance the world around us. These products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks, coatings, elastomers, bioplastics and automotive components that reduce gasoline vapor emissions.
Headquartered in North Charleston, South Carolina, U.S.A., Ingevity operates from 25 locations around the world and employs approximately 1,850 people. The company is traded on the New York Stock Exchange (NYSE: NGVT).