Business
Calumet Announces Sale of Assets Related to Industrial Portion of its Royal Purple® Business
INDIANAPOLIS, Feb. 28, 2025 /PRNewswire/ -- Calumet, Inc. (NASDAQ: CLMT) (the "Company," "Calumet," "we," "our" or "us") announced it has entered into a
About this update from Calumet, Inc
[{"type":"text","content":"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.\n\nThe 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. \nCalumet 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™. \nThe 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.\n\"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.\"\n\"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 em...