PR Newswire
INDIANAPOLIS
, Feb. 28, 2025 /PRNewswire/ — Calumet, Inc. (NASDAQ: CLMT) (the “Company,” “Calumet,” “we,” “our” or “us”) announced it has entered into a definitive agreement with a wholly owned subsidiary of Lubrication Engineers, Inc., a portfolio company of Aurora Capital Partners, to sell assets related to the industrial portion of its Royal Purple® business, for $110 million. Calumet will retain, and continue to grow, the consumer portion of the Royal Purple business and the Royal Purple production facility in Porter, TX.
The transaction of Royal Purple’s high performance synthetic industrial product line includes industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils, along with an exclusive license of the brand for industrial applications. During the year ended December 31, 2024, Royal Purple’s industrial business generated approximately $29 million of total sales.
Calumet will retain ownership of the Porter, Texas, manufacturing site and the consumer portion of the Royal Purple business, which caters to a diverse array of automotive product applications through a multi-channel strategy of leading national retail outlets and specialty auto parts stores. Key brands within the consumer portion of Royal Purple include: High Performance Motor Oil, HPS®, HMX®, Max EZ®, Max Gear®, Max-Clean®, XPR®, and Duralec Super™.
The Company expects to use the sale proceeds to primarily pay down debt. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.
“Over the past two years, we have worked to bring clarity and focus to our integrated specialties business strategy, and this transaction is a reflection of that process,” said Scott Obermeier, EVP Specialties. “We look forward to continuing the rapid growth trajectory throughout our specialties business, particularly in areas where we uniquely leverage Calumet’s leading integrated specialties network.”
“This transaction is a strategic fit across the board,” said Todd Borgmann, CEO. “After executing upon a number of strategic catalysts over the past year, Calumet’s top priority is deleveraging our balance sheet, which this deal accelerates. The Royal Purple industrial team is joining a great company, and I want to thank all of those employees who have worked to make Royal Purple’s industrial business the success it is today.”
Moelis & Company LLC served as exclusive financial advisor to Calumet in connection with the transaction, and Faegre Drinker served as M&A counsel.
About Calumet
Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute “forward-looking statements.” The words “will,” “may,” “intend,” “believe,” “expect,” “outlook,” “forecast,” “anticipate,” “estimate,” “continue,” “plan,” “should,” “could,” “would,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, (i) our expectation regarding the time required to consummate the proposed sale of the Royal Purple® industrial business (the “Proposed Transaction”) and the satisfaction or waiver of conditions in the agreement governing the Proposed Transaction, (ii) our ability to obtain regulatory or other third-party approvals and consents and otherwise consummate the Proposed Transaction, (iii) our ability to achieve the strategic and other objectives relating to the Proposed Transaction, (iv) our expectation regarding our business outlook and cash flows, including with respect to our plans to de-leverage our balance sheet, and (v) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditure. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. All comments concerning our current expectations for future sales and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisition or other disposition transactions.
We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. While our management considers these assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained above. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission (“SEC”), including the risk factors and other cautionary statements in the latest Annual Report on Form 10-K of the Calumet Specialty Products Partners, L.P. (the “Partnership”) and other filings with the SEC by the Company and the Partnership. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
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SOURCE Calumet, Inc.
