Calumet Announces Closing of Sale of Assets Related to Industrial Portion of its Royal Purple® Business
Calumet (NASDAQ: CLMT) has completed the sale of its Royal Purple® industrial business assets to Lubrication Engineers, Inc., a portfolio company of Aurora Capital Partners, for $110 million in cash. The sold assets include industrial gear lubricants, bio-environmental lubricants, and various industrial oils, along with an exclusive brand license for industrial applications.
The divested industrial segment generated approximately $29 million in total sales during 2024. Calumet retained ownership of the Porter, Texas manufacturing site and the consumer portion of Royal Purple®, which focuses on automotive products sold through national retail and specialty auto parts stores. The company plans to use the proceeds primarily for debt reduction.
Additionally, Calumet announced the termination of its at-the-market (ATM) equity offering program, which was announced in January 2025 but was never utilized.
Calumet (NASDAQ: CLMT) ha completato la vendita dei suoi beni aziendali Royal Purple® a Lubrication Engineers, Inc., una società del portafoglio di Aurora Capital Partners, per 110 milioni di dollari in contanti. I beni venduti includono lubrificanti per ingranaggi industriali, lubrificanti bio-ambientali e vari oli industriali, insieme a una licenza di marchio esclusiva per applicazioni industriali.
Il segmento industriale ceduto ha generato circa 29 milioni di dollari di vendite totali nel 2024. Calumet ha mantenuto la proprietà del sito di produzione a Porter, Texas, e della parte consumer di Royal Purple®, che si concentra su prodotti automobilistici venduti attraverso negozi al dettaglio nazionali e negozi specializzati in ricambi auto. L'azienda prevede di utilizzare i proventi principalmente per la riduzione del debito.
Inoltre, Calumet ha annunciato la cessazione del suo programma di offerta di azioni at-the-market (ATM), annunciato a gennaio 2025 ma mai utilizzato.
Calumet (NASDAQ: CLMT) ha completado la venta de sus activos comerciales de Royal Purple® a Lubrication Engineers, Inc., una empresa del portafolio de Aurora Capital Partners, por 110 millones de dólares en efectivo. Los activos vendidos incluyen lubricantes para engranajes industriales, lubricantes bioambientales y varios aceites industriales, junto con una licencia de marca exclusiva para aplicaciones industriales.
El segmento industrial desinvertido generó aproximadamente 29 millones de dólares en ventas totales durante 2024. Calumet retuvo la propiedad del sitio de fabricación en Porter, Texas, y la parte de consumo de Royal Purple®, que se enfoca en productos automotrices vendidos a través de tiendas minoristas nacionales y tiendas especializadas en piezas de automóviles. La empresa planea utilizar los ingresos principalmente para la reducción de deudas.
Además, Calumet anunció la terminación de su programa de oferta de acciones en el mercado (ATM), que fue anunciado en enero de 2025 pero nunca se utilizó.
Calumet (NASDAQ: CLMT)는 Aurora Capital Partners의 포트폴리오 회사인 Lubrication Engineers, Inc.에 Royal Purple® 산업 사업 자산을 현금 1억 1천만 달러에 매각했다고 발표했습니다. 판매된 자산에는 산업 기어 윤활유, 생물 환경 윤활유 및 다양한 산업용 오일이 포함되며, 산업 응용 분야에 대한 독점 브랜드 라이센스도 포함됩니다.
매각된 산업 부문은 2024년 동안 약 2천9백만 달러의 총 매출을 기록했습니다. Calumet는 텍사스 포터에 있는 제조 시설과 소비자 부분인 Royal Purple®의 소유권을 유지했으며, 이는 국가 소매 및 전문 자동차 부품 매장을 통해 판매되는 자동차 제품에 중점을 두고 있습니다. 회사는 수익금을 주로 부채 상환에 사용할 계획입니다.
또한 Calumet는 2025년 1월에 발표된 시장에서의 주식 제공 프로그램(ATM)의 종료를 발표했으며, 이는 한 번도 활용되지 않았습니다.
Calumet (NASDAQ: CLMT) a finalisé la vente de ses actifs commerciaux Royal Purple® à Lubrication Engineers, Inc., une société du portefeuille d'Aurora Capital Partners, pour 110 millions de dollars en espèces. Les actifs vendus comprennent des lubrifiants pour engrenages industriels, des lubrifiants bio-environnementaux et divers huiles industrielles, ainsi qu'une licence de marque exclusive pour des applications industrielles.
Le segment industriel cédé a généré environ 29 millions de dollars de ventes totales en 2024. Calumet a conservé la propriété du site de fabrication à Porter, au Texas, ainsi que la partie consommateur de Royal Purple®, qui se concentre sur les produits automobiles vendus par le biais de magasins de détail nationaux et de magasins spécialisés en pièces automobiles. L'entreprise prévoit d'utiliser les produits principalement pour réduire sa dette.
De plus, Calumet a annoncé la cessation de son programme d'offre d'actions sur le marché (ATM), qui avait été annoncé en janvier 2025 mais n'a jamais été utilisé.
Calumet (NASDAQ: CLMT) hat den Verkauf seiner Royal Purple®-Industriegeschäftsanteile an Lubrication Engineers, Inc., ein Unternehmen im Portfolio von Aurora Capital Partners, für 110 Millionen US-Dollar in bar abgeschlossen. Zu den verkauften Vermögenswerten gehören industrielle Getriebeöle, bio-umweltfreundliche Schmierstoffe und verschiedene Industrieöle sowie eine exklusive Markenlizenz für industrielle Anwendungen.
Das abgegebene Industriesegment erzielte im Jahr 2024 einen Gesamtumsatz von etwa 29 Millionen US-Dollar. Calumet behielt das Eigentum an dem Produktionsstandort in Porter, Texas, sowie an dem Verbraucherbereich von Royal Purple®, der sich auf Automobilprodukte konzentriert, die über nationale Einzelhandels- und Fachgeschäfte für Autoteile verkauft werden. Das Unternehmen plant, die Erlöse hauptsächlich zur Schuldentilgung zu verwenden.
Darüber hinaus gab Calumet die Beendigung seines Angebotsprogramms für Aktien am Markt (ATM) bekannt, das im Januar 2025 angekündigt, aber nie genutzt wurde.
- Sale of Royal Purple industrial business for $110 million cash strengthens balance sheet
- Proceeds to be used for debt reduction, improving financial health
- Retention of valuable consumer automotive product line and manufacturing facility
- No shareholder dilution as ATM program terminated without usage
- Divestment of business segment that generated $29 million in annual sales
- Loss of revenue stream from industrial lubricants product line
Insights
Calumet's $110 million sale of its Royal Purple® industrial business represents a strategic financial win with several positive implications. The transaction was completed at approximately
The decision to use proceeds primarily for debt reduction demonstrates management's commitment to strengthening the balance sheet, which should improve financial flexibility and potentially reduce interest expenses. This deleveraging move comes at an opportune time in the higher interest rate environment.
Importantly, Calumet retained both the Porter manufacturing facility and the consumer portion of Royal Purple®, which targets automotive applications through retail and specialty channels. This suggests the company is strategically focusing on potentially higher-margin, consumer-facing products while monetizing the industrial segment at an attractive valuation.
The termination of the previously announced ATM Program (which was never utilized) further supports the improved financial position, as the company no longer sees a need for equity-based capital raising. This eliminates potential shareholder dilution concerns while the debt reduction should strengthen key financial ratios.
Overall, this transaction represents approximately
The assets sold related to Royal Purple's high performance synthetic industrial product line including 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, the industrial portion of the Royal Purple® business generated approximately
Calumet retained ownership of the
The Company intends to use the sale proceeds to primarily pay down debt.
Calumet also announced that it has terminated its at-the-market equity offering program (the "ATM Program") for shares of its common stock. The ATM Program was announced in conjunction with related refinancing activity in January 2025 and was never utilized.
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
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 intended use of proceeds from the sale of the Royal Purple® industrial business (the "Proposed Transaction"), (ii) our ability to achieve the strategic and other objectives relating to the Proposed Transaction, (iii) our expectation regarding our business outlook and cash flows, including with respect to our plans to de-leverage our balance sheet, and (iv) 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.
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