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.
