DEFA14A: Ingevity Appoints David H. Li as President and CEO, Effective April 7, 2025

Ingevity Corporation names David H. Li as its new President and CEO, succeeding interim CEO Luis Fernandez-Moreno, effective April 7, 2025.

Summary

• Ingevity Corporation has appointed David H. Li as its new President and CEO, effective April 7, 2025.
• Li succeeds Luis Fernandez-Moreno, who served as interim President and CEO since October 2024 and will remain on the board.
• Li previously served as CEO, President, and a board member of CMC Materials, Inc., before its sale to Entegris, Inc. in 2022.
• During Li's tenure at CMC Materials, the company delivered a four-fold return to stockholders and reported record revenue of $1.2 billion and an adjusted EBITDA margin of 30 percent.
• Ingevity filed a preliminary proxy statement with the SEC on March 10, 2025, regarding its 2025 annual meeting of stockholders.
• The company encourages investors and stockholders to read the proxy statement and other relevant documents filed with the SEC.

Sentiment

Score: 8

Explanation: The announcement is positive due to the appointment of an experienced CEO with a strong track record. The transition appears smooth, with the interim CEO remaining on the board.

Positives

• David H. Li has a proven track record of driving growth and improving financial performance at CMC Materials.
• Li's experience includes repositioning businesses, building high-performing teams, and reshaping portfolios.
• Luis Fernandez-Moreno's leadership as interim CEO resulted in improved operational performance and free cash flow generation.
• The board believes Li is the ideal CEO to lead Ingevity and enable the company to realize its full potential.
• Li's previous company, CMC Materials, had approximately 16% cumulative annual revenue growth from Fiscal Year 2014 to Q2 Fiscal Year 2022 LTM.

Risks

• The press release contains forward-looking statements that are subject to risks and uncertainties, as detailed in Ingevity's SEC filings.
• Actual results could differ materially from the views expressed in the forward-looking statements.

Future Outlook

Ingevity expects David H. Li to build on the company's momentum and provide leadership that will enable Ingevity to realize its full potential as a world-class specialty chemicals and materials company.

Management Comments

• Jean Blackwell, Ingevity's board chair, stated that Li's accomplishments and ability to drive strategic execution make him the ideal CEO to lead Ingevity.
• David H. Li stated he looks forward to leveraging his experience to unlock the value within Ingevity and position the company for long-term profitable growth and superior value creation.
• Luis Fernandez-Moreno stated that Dave is an excellent choice to lead our talented team, and I look forward to working through a smooth leadership transition together.

Industry Context

The appointment of David H. Li, who has a strong background in the specialty materials industry, suggests Ingevity is aiming to enhance its position in this competitive market. His experience at CMC Materials, a supplier to the semiconductor and energy industries, could bring new perspectives and strategies to Ingevity.

Comparison to Industry Standards

• CMC Materials' adjusted EBITDA margin of 30% was in the top tier of industry peers during Li's tenure.
• The four-fold return to stockholders at CMC Materials is a significant achievement compared to industry averages.
• The $6.5B sale of CMC Materials to Entegris is a large transaction in the specialty materials industry.

Management Changes

Stakeholder Impact

• Shareholders can expect a new strategic direction under David H. Li's leadership.
• Employees will be led by a CEO with a track record of building high-performing teams.
• Customers may see changes in product lines and service offerings as Li reshapes the company's portfolio.

Next Steps

• David H. Li will assume the role of President and CEO on April 7, 2025.
• Li is expected to join the board of directors following the 2025 Annual Meeting.
• Ingevity will file and mail a definitive proxy statement to stockholders of record entitled to vote at the 2025 Annual Meeting.

Key Dates

Keywords

CEO, President, David H. Li, Ingevity, Appointment, Leadership, Specialty Materials, Proxy Statement