Business
Calumet Specialty Products Partners, L.P. Provides Update on Strategy, M&A and Business Resegmentation
INDIANAPOLIS, Feb. 16, 2021 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet" or the "Partnership") (NASDAQ: CLMT) today provided an update
About this update from Calumet, Inc
[{"type":"text","content":"INDIANAPOLIS, Feb. 16, 2021 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (\"Calumet\" or the \"Partnership\") (NASDAQ: CLMT) today provided an update to the Partnership's strategic and business progress.\nHighlights:\nClosed the $70 million sale leaseback transaction for fuels terminal assets at the Shreveport refinery Planning to retain and focus investment in high-growth Finished Lubricants and Chemicals business Great Falls refinery presents one of the most compelling opportunities for Renewable Diesel production in North America Planning to re-segment financials to provide investors with greater transparency Strategic objectives to create unitholder value remain unchanged: 1. Focus resources on volume and margin growth in specialty products 2. De-hybridize business model / create investor transparency 3. De-lever the Partnership's balance sheet The Partnership recently closed the $70 million sale leaseback transaction of fuels terminal assets at our Shreveport complex. These proceeds, together with existing cash on the balance sheet, are adequate to redeem the $150 million 2022 Notes, allowing the Partnership to make strategic deleveraging decisions with a focus on long-term unitholder value. For additional details regarding the terms of the sale leaseback transaction and the successful bondholder consent please see the Form 8-K filed today.\nFinished Lubricants and Chemicals This business has been the subject of market speculation. However, we intend to keep this high-growth business, which has an expected annual Adjusted EBITDA exceeding $60 million based on our 2021 market outlook. FL&C's strong growth rates and iconic brands are supported through innovation and investments such as:\nRoyal Purple's rollout of new consumer 5 Quart bottle launched 2H'20 Upgrading and expanding Royal Purple's Industrial BioMax line of Environmentally Acceptable Lubricants in 2020 Investing in additional TruFuel production capacity, to be commissioned by July 2021, enabling the TruFuel Brand to keep up with increasing demand and the accelerating market trend to larger sized packsMore detail on the business' exciting growth potential will be provided in support of our strategic objective to create investor transparency.\nGreat Falls Renewable Diesel OpportunityWe believe Great Falls, which connects western agriculture with West Co...