Calumet Specialty Products Partners has announced that it has signed a definitive agreement to acquire high-performance lubricant manufacturer Royal Purple Inc. for approximately $335 million. The acquisition is expected to close by the middle of July 2012, subject to customary closing conditions and regulatory approval.
"Calumet is very excited to be adding the Royal Purple product line to our portfolio of specialty products," said Bill Grube, Calumet's chief executive officer. "Royal Purple has an extensive specialty product line serving the industrial and consumer automotive markets. They also have a very experienced and dedicated workforce, and we are looking forward to working with them."
"Everyone at Royal Purple is excited about becoming part of Calumet," said Lee Culbertson, Royal Purple's president and chief executive officer. "We believe Calumet shares Royal Purple's vision and commitment to excellence and will greatly assist in our continued growth."
According to the agreement, Royal Purple will be converted into a limited liability company, and Calumet will acquire 100 percent of its membership interests at the closing. Calumet intends to finance the Royal Purple acquisition through a combination of cash on hand, including a portion of the approximately $149 million of net proceeds from its recently completed common unit offering, borrowings under its senior secured revolving credit facility and potentially other long-term debt financing. Calumet's obligation to consummate the acquisition is not conditioned upon the receipt of financing.
Based in Indianapolis, Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products. The company has eight plants located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeastern Texas and eastern Missouri.
For more information, visit www.calumetspecialty.com.