Calumet Specialty Products Partners has announced that it has signed a definitive agreement to acquire Montana Refining Company Inc. for approximately $120 million. Closing of the transaction is expected to occur in the fourth quarter, subject to customary closing conditions and regulatory approval.
Montana Refining owns and operates a refinery in Great Falls, Mont., which produces gasoline, middle distillates and asphalt for predominantly local markets in Washington, Montana, Idaho and Canada. The refinery has a crude oil throughput capacity of approximately 9,800 barrels per day with its crude oil feedstocks sourced primarily from Canada.
"Calumet is pleased to add the Montana refinery to our portfolio of niche assets," said Calumet's chief executive officer Bill Grube. “This acquisition further develops our long-term strategy of diversifying our crude slate and geographic presence. We expect this acquisition to be immediately accretive to our distributable cash flow. We are pleased with this acquisition and continue to actively look for additional growth opportunities.”
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 nine plants located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeastern Texas and eastern Missouri.
For more information, visit www.calumetspecialty.com.