Calumet Announces Sale of Assets Related to Industrial Portion of its Royal Purple® Business
Calumet (NASDAQ: CLMT) announced a definitive agreement with a subsidiary of Lubrication Engineers, Inc., 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 production facility in Porter, TX. The transaction 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. In 2024, Royal Purple's industrial business generated approximately $29 million in sales. Proceeds from the sale will be used primarily to pay down debt. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.
Calumet's CEO, Todd Borgmann, emphasized that the deal aligns with the company's strategy to deleverage its balance sheet. Moelis & Company acted as exclusive financial advisor, and Faegre Drinker served as M&A counsel.
Calumet (NASDAQ: CLMT) ha annunciato un accordo definitivo con una sussidiaria di Lubrication Engineers, Inc., per vendere beni legati alla parte industriale del suo business Royal Purple® per 110 milioni di dollari. Calumet manterrà e continuerà a far crescere la parte consumer del business Royal Purple e l'impianto di produzione a Porter, TX. La transazione include lubrificanti per ingranaggi industriali, lubrificanti bio-ambientali, oli per motori a gas naturale stazionari, lubrificanti idraulici e oli per compressori, insieme a una licenza esclusiva del marchio per applicazioni industriali. Nel 2024, il business industriale di Royal Purple ha generato circa 29 milioni di dollari in vendite. I proventi della vendita saranno utilizzati principalmente per ridurre il debito. La transazione dovrebbe chiudersi nella prima metà del 2025, soggetta a condizioni di chiusura consuete.
Il CEO di Calumet, Todd Borgmann, ha sottolineato che l'accordo è in linea con la strategia dell'azienda di ridurre il debito. Moelis & Company ha agito come consulente finanziario esclusivo, e Faegre Drinker ha svolto il ruolo di consulente M&A.
Calumet (NASDAQ: CLMT) anunció un acuerdo definitivo con una subsidiaria de Lubrication Engineers, Inc., para vender activos relacionados con la parte industrial de su negocio Royal Purple® por 110 millones de dólares. Calumet retendrá y continuará haciendo crecer la parte de consumo del negocio Royal Purple y la planta de producción en Porter, TX. La transacción incluye lubricantes para engranajes industriales, lubricantes bio-ambientales, aceites para motores de gas natural estacionarios, lubricantes hidráulicos y aceites para compresores, junto con una licencia exclusiva de la marca para aplicaciones industriales. En 2024, el negocio industrial de Royal Purple generó aproximadamente 29 millones de dólares en ventas. Los ingresos de la venta se utilizarán principalmente para reducir la deuda. Se espera que la transacción se cierre en la primera mitad de 2025, sujeta a condiciones de cierre habituales.
El CEO de Calumet, Todd Borgmann, enfatizó que el acuerdo está alineado con la estrategia de la empresa para reducir su deuda. Moelis & Company actuó como asesor financiero exclusivo, y Faegre Drinker sirvió como asesor en M&A.
Calumet (NASDAQ: CLMT)는 Lubrication Engineers, Inc.의 자회사와 1억 1천만 달러에 Royal Purple® 비즈니스의 산업 부분에 관련된 자산을 판매하는 최종 계약을 체결했다고 발표했습니다. Calumet는 Royal Purple 비즈니스의 소비자 부분을 유지하고 성장시키며, 텍사스주 포터에 있는 생산 시설을 계속 운영할 것입니다. 이 거래에는 산업 기어 윤활유, 생물 환경 윤활유, 고정식 천연 가스 엔진 오일, 유압 윤활유 및 압축기 오일이 포함되며, 산업 응용 프로그램을 위한 브랜드의 독점 라이센스도 포함됩니다. 2024년에는 Royal Purple의 산업 비즈니스가 약 2천9백만 달러의 매출을 올렸습니다. 판매 수익은 주로 부채 상환에 사용될 예정입니다. 거래는 2025년 상반기 중에 마감될 것으로 예상되며, 일반적인 마감 조건이 적용됩니다.
Calumet의 CEO인 Todd Borgmann는 이 거래가 회사의 부채 감소 전략과 일치한다고 강조했습니다. Moelis & Company는 독점 재무 자문 역할을 했으며, Faegre Drinker는 M&A 자문 역할을 수행했습니다.
Calumet (NASDAQ: CLMT) a annoncé un accord définitif avec une filiale de Lubrication Engineers, Inc., pour vendre des actifs liés à la partie industrielle de son activité Royal Purple® pour 110 millions de dollars. Calumet conservera et continuera à développer la partie consommation de l'activité Royal Purple ainsi que l'installation de production à Porter, TX. La transaction comprend des lubrifiants pour engrenages industriels, des lubrifiants bio-environnementaux, des huiles pour moteurs à gaz naturel stationnaires, des lubrifiants hydrauliques et des huiles pour compresseurs, ainsi qu'une licence exclusive de la marque pour des applications industrielles. En 2024, l'activité industrielle de Royal Purple a généré environ 29 millions de dollars de ventes. Les produits de la vente seront principalement utilisés pour réduire la dette. La transaction devrait être finalisée au cours de la première moitié de 2025, sous réserve des conditions de clôture habituelles.
Le PDG de Calumet, Todd Borgmann, a souligné que l'accord s'inscrit dans la stratégie de l'entreprise de réduire son endettement. Moelis & Company a agi en tant que conseiller financier exclusif, et Faegre Drinker a servi de conseiller en fusions et acquisitions.
Calumet (NASDAQ: CLMT) gab eine endgültige Vereinbarung mit einer Tochtergesellschaft von Lubrication Engineers, Inc. bekannt, um Vermögenswerte im Zusammenhang mit dem industriellen Teil seines Royal Purple®-Geschäfts für 110 Millionen US-Dollar zu verkaufen. Calumet wird den Verbraucheranteil des Royal Purple-Geschäfts beibehalten und weiter ausbauen sowie die Produktionsstätte in Porter, TX, fortführen. Die Transaktion umfasst industrielle Getriebeöle, bio-umweltfreundliche Schmierstoffe, stationäre Erdgasmotorenöle, hydraulische Schmierstoffe und Kompressoröle sowie eine exklusive Lizenz der Marke für industrielle Anwendungen. Im Jahr 2024 erzielte das industrielle Geschäft von Royal Purple einen Umsatz von etwa 29 Millionen US-Dollar. Die Erlöse aus dem Verkauf werden hauptsächlich zur Tilgung von Schulden verwendet. Die Transaktion wird voraussichtlich in der ersten Hälfte des Jahres 2025 abgeschlossen, vorbehaltlich üblicher Abschlussbedingungen.
Der CEO von Calumet, Todd Borgmann, betonte, dass der Deal mit der Strategie des Unternehmens zur Reduzierung der Verschuldung übereinstimmt. Moelis & Company fungierte als exklusiver Finanzberater, und Faegre Drinker war als M&A-Berater tätig.
- Sale of industrial assets for $110 million
- Proceeds to be used to pay down debt
- Retention and focus on consumer portion of Royal Purple
- Transaction expected to close in H1 2025
- Loss of $29 million in annual sales from industrial business
Insights
Calumet's $110 million sale of its Royal Purple industrial business segment represents a strategic move aligned with management's focus on balance sheet improvement. The transaction values the divested unit at approximately 3.8x revenue, based on the disclosed $29 million in annual sales from the industrial segment.
This divestiture follows management's stated goal of bringing "clarity and focus" to their integrated specialties strategy while prioritizing debt reduction. The company is maintaining ownership of potentially higher-margin consumer automotive products and the manufacturing facility in Porter, Texas, suggesting a strategic pivot toward consumer-facing businesses.
The deal structure allows Calumet to monetize the industrial product line while retaining valuable manufacturing assets and the consumer portion of Royal Purple, indicating selective portfolio optimization rather than a complete exit from the lubricants space. By shedding a relatively small revenue segment (the industrial portion) while keeping production capabilities, Calumet appears to be refining its operational focus while extracting significant value.
For investors, this transaction accelerates Calumet's deleveraging timeline without sacrificing core manufacturing capabilities or brand equity in the consumer space. The favorable multiple received signals strong demand for specialty chemical assets in the industrial lubricants sector, highlighting the value embedded in Calumet's specialty portfolio beyond its traditional refining operations.
This divestiture represents classic portfolio optimization - Calumet is extracting capital from a non-core asset while retaining complementary operations that align with their integrated specialties focus. The transaction demonstrates disciplined capital allocation by commanding a premium valuation multiple for a business segment representing a modest portion of overall operations.
The structure preserves operational continuity at the Porter facility while monetizing the industrial product formulations and securing an exclusive brand licensing arrangement. This creates a clean separation that minimizes transition complexities while maximizing financial impact through immediate debt reduction.
Strategically, this move reflects the ongoing transformation of Calumet from a traditional refiner toward a specialty chemicals producer with stronger consumer-facing elements. By retaining the consumer business with its established retail distribution channels, Calumet maintains exposure to potentially higher-margin formulated products while reducing operational complexity.
The timing aligns with broader industry dynamics where specialty chemical assets are attracting premium valuations from financial sponsors like Aurora Capital. This allows Calumet to capitalize on strong valuation multiples for specialty chemical assets while advancing its deleveraging objectives.
This transaction accomplishes multiple strategic objectives simultaneously: focusing the business portfolio, strengthening the balance sheet, and creating a cleaner investment thesis - all without sacrificing manufacturing capabilities or market position in the consumer lubricants segment where brand equity may carry higher value.
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
Calumet will retain ownership of the
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
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.
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SOURCE Calumet, Inc.
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