Lubrication Engineers to Acquire Industrial Brands & Products of Royal Purple
Lubrication Engineers (LE) has announced a definitive agreement to acquire the industrial brands and products division of Royal Purple (RPI) from Calumet (NASDAQ: CLMT). The deal will make LE the exclusive manufacturer and seller of Royal Purple®-branded industrial products, while Calumet retains ownership of Royal Purple's consumer division and manufacturing assets.
RPI specializes in premium synthetic performance fluids, lubricants, and greases for industrial applications, including gear oils, bio-environmental lubricants, industrial engine oils, hydraulic lubricants, and compressor oils. The company serves various sectors including manufacturing, power generation, petrochemicals, energy, and marine industries.
This marks LE's first acquisition since partnering with Aurora Capital Partners in September 2023. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.
Lubrication Engineers (LE) ha annunciato un accordo definitivo per acquisire la divisione di marchi e prodotti industriali di Royal Purple (RPI) da Calumet (NASDAQ: CLMT). L'accordo renderà LE il produttore e venditore esclusivo dei prodotti industriali a marchio Royal Purple®, mentre Calumet manterrà la proprietà della divisione consumer di Royal Purple e degli asset produttivi.
RPI si specializza in fluidi sintetici di alta qualità, lubrificanti e grassi per applicazioni industriali, inclusi oli per ingranaggi, lubrificanti bio-ambientali, oli per motori industriali, lubrificanti idraulici e oli per compressori. L'azienda serve vari settori tra cui manifattura, produzione di energia, petrolchimica, energia e industrie marine.
Questo segna la prima acquisizione di LE da quando ha collaborato con Aurora Capital Partners a settembre 2023. Si prevede che la transazione si chiuda nella prima metà del 2025, soggetta a condizioni di chiusura consuete.
Lubrication Engineers (LE) ha anunciado un acuerdo definitivo para adquirir la división de marcas y productos industriales de Royal Purple (RPI) de Calumet (NASDAQ: CLMT). El acuerdo convertirá a LE en el fabricante y vendedor exclusivo de productos industriales de la marca Royal Purple®, mientras que Calumet retiene la propiedad de la división de consumo de Royal Purple y de los activos de fabricación.
RPI se especializa en fluidos de rendimiento sintético premium, lubricantes y grasas para aplicaciones industriales, incluidos aceites para engranajes, lubricantes bioambientales, aceites para motores industriales, lubricantes hidráulicos y aceites para compresores. La empresa atiende a varios sectores, incluidos la manufactura, la generación de energía, la petroquímica, la energía y las industrias marinas.
Esta es la primera adquisición de LE desde que se asoció con Aurora Capital Partners en septiembre de 2023. Se espera que la transacción se cierre en la primera mitad de 2025, sujeta a condiciones de cierre habituales.
Lubrication Engineers (LE)는 Calumet (NASDAQ: CLMT)로부터 Royal Purple (RPI)의 산업 브랜드 및 제품 부문을 인수하기 위한 확정 계약을 발표했습니다. 이번 거래로 LE는 Royal Purple® 브랜드의 산업 제품을 독점적으로 제조 및 판매하게 되며, Calumet은 Royal Purple의 소비자 부문 및 제조 자산의 소유권을 유지합니다.
RPI는 기어 오일, 생물 환경 친화적 윤활유, 산업 엔진 오일, 유압 윤활유 및 압축기 오일을 포함한 산업 응용을 위한 프리미엄 합성 성능 유체, 윤활유 및 그리스를 전문으로 합니다. 이 회사는 제조, 전력 생산, 석유화학, 에너지 및 해양 산업을 포함한 다양한 분야에 서비스를 제공합니다.
이번 인수는 LE가 2023년 9월 Aurora Capital Partners와 파트너십을 체결한 이후 첫 번째 인수입니다. 거래는 일반적인 마감 조건에 따라 2025년 상반기 내에 완료될 것으로 예상됩니다.
Lubrication Engineers (LE) a annoncé un accord définitif pour acquérir la division des marques et des produits industriels de Royal Purple (RPI) de Calumet (NASDAQ: CLMT). Cet accord fera de LE le fabricant et vendeur exclusif de produits industriels sous la marque Royal Purple®, tandis que Calumet conservera la propriété de la division consommateurs et des actifs de fabrication de Royal Purple.
RPI se spécialise dans les fluides de performance synthétiques haut de gamme, les lubrifiants et les graisses pour des applications industrielles, y compris les huiles pour engrenages, les lubrifiants bio-environnementaux, les huiles pour moteurs industriels, les lubrifiants hydrauliques et les huiles pour compresseurs. L'entreprise sert divers secteurs, notamment la fabrication, la production d'énergie, la pétrochimie, l'énergie et les industries maritimes.
Ceci marque la première acquisition de LE depuis son partenariat avec Aurora Capital Partners en septembre 2023. La transaction devrait être finalisée dans la première moitié de 2025, sous réserve des conditions de clôture habituelles.
Lubrication Engineers (LE) hat eine endgültige Vereinbarung zur Übernahme der Industrie-Marken- und Produktdivision von Royal Purple (RPI) von Calumet (NASDAQ: CLMT) bekannt gegeben. Der Deal macht LE zum exklusiven Hersteller und Verkäufer von industriellen Produkten mit der Marke Royal Purple®, während Calumet das Eigentum an der Verbrauchersparte und den Produktionsanlagen von Royal Purple behält.
RPI ist auf hochwertige synthetische Leistungsflüssigkeiten, Schmierstoffe und Fette für industrielle Anwendungen spezialisiert, darunter Getriebeöle, bio-umweltfreundliche Schmierstoffe, industrielle Motorenöle, hydraulische Schmierstoffe und Kompressoröle. Das Unternehmen bedient verschiedene Sektoren, darunter die Fertigung, die Energieerzeugung, die Petrochemie, die Energie- und die Schifffahrtsindustrie.
Dies ist die erste Übernahme von LE seit der Partnerschaft mit Aurora Capital Partners im September 2023. Der Abschluss der Transaktion wird für die erste Hälfte des Jahres 2025 erwartet, vorbehaltlich der üblichen Abschlussbedingungen.
- Calumet (CLMT) retains valuable consumer division and manufacturing assets
- Strategic divestment allows CLMT to focus on core consumer business
- Transaction provides potential cash influx for CLMT (value undisclosed)
- Loss of industrial division revenue stream for CLMT
- Reduction in CLMT's market presence in industrial lubricants sector
Insights
Calumet's divestiture of Royal Purple's industrial segment represents a strategic portfolio refinement while maintaining the consumer-facing business. This partial brand divestiture signals a deliberate business segmentation strategy rather than a full exit from the lubricants market.
The transaction structure is particularly noteworthy - Calumet retains the consumer portion of Royal Purple along with all manufacturing assets, while Lubrication Engineers acquires only the industrial brands and products. This suggests Calumet is prioritizing its consumer-focused operations while monetizing a segment that may require different expertise, distribution channels, or capital investment.
Without disclosed financial terms, investors cannot assess the immediate balance sheet impact. However, this transaction should be viewed through the lens of portfolio optimization rather than distress-driven selling. The retention of manufacturing assets indicates Calumet will likely continue production for both segments, potentially through a supply agreement with LE.
For Calumet investors, key questions include: How significant is the divested industrial segment to overall revenue? Will this create operational efficiencies or complications? How will proceeds be deployed? This transaction may streamline Calumet's business focus while providing capital for strategic initiatives, debt reduction, or shareholder returns.
This transaction illustrates a nuanced approach to brand management and business segmentation. Rather than divesting Royal Purple entirely, Calumet has carved out a strategic middle path by selling only the industrial applications while maintaining the consumer business and manufacturing infrastructure.
This structure creates an interesting operational dynamic: Calumet likely becomes both a brand owner and a contract manufacturer simultaneously. By retaining manufacturing assets but divesting industrial product lines, Calumet potentially generates revenue from manufacturing for LE while focusing its own sales and marketing efforts on higher-margin consumer channels.
The decision to separate industrial from consumer applications reveals sophisticated strategic thinking about the different success factors in each segment. Industrial lubricants typically require more technical expertise, specialized sales teams, and R&D resources focused on performance specifications. Consumer products, conversely, depend more on brand recognition, retail relationships, and marketing.
For Calumet, this move likely represents business simplification - reducing the complexity of serving two distinct market segments with different buying behaviors, technical requirements, and distribution channels. The transaction allows each entity to specialize in its respective market while potentially maintaining manufacturing synergies.
RPI is a leading designer and manufacturer of premium synthetic performance fluids, lubricants, and greases for diversified industrial applications. RPI's robust portfolio of highly engineered products – which include gear oils, bio-environmental lubricants, industrial engine oils, hydraulic lubricants and compressor oils – are specially designed to improve performance, reduce total cost of ownership, and elongate the useful lives of mission-critical assets. Customers across industries such as manufacturing, power generation, petrochemicals, energy, and marine rely on RPI's proprietary formulations and technical expertise to solve their most important asset reliability challenges. RPI's products are sold to end users and through a robust network of specialty distribution partners.
"We are thrilled to add the highly regarded Royal Purple® brand of premium synthetic industrial solutions to LE's product portfolio," said Eric Borland, CEO of LE. "Together with RPI's R&D, sales, and marketing teams, we are committed to partnering with RPI's existing end users, distribution partners, and suppliers to ensure the continued delivery of high-quality products and services to the marketplace. We look forward to leveraging LE's technical expertise to develop exciting new products and service offerings for all current and prospective new customers, including those under RPI's BioMax™ brand of environmentally acceptable lubricants."
This is LE's first acquisition since partnering with Aurora Capital Partners in September 2023.
"RPI is a terrific fit with LE's core strategy of developing, manufacturing, and marketing ultra-premium, MRO-oriented, industrial lubricants and related asset reliability solutions," said Randy Moser, Partner at Aurora. "We appreciate Calumet's impressive stewardship of the Royal Purple® brand over the past decade, and we are excited to invest further behind LE and RPI's joint product development, customer service, and manufacturing capabilities."
The transaction is expected to close in the first half of 2025 subject to customary closing conditions.
About Lubrication Engineers
A leader in lubricants since 1951, Lubrication Engineers develops, manufactures, and sells premium industrial greases, gear oils, lubricants, and related asset reliability products. LE's highly engineered products directly lower its customers' total cost of ownership through reduced energy consumption, reduced maintenance, and improved equipment longevity. LE services customers in more than 60 countries from its flagship 150,000 sq. ft. manufacturing plant in
About Aurora Capital Partners
Aurora Capital Partners is a leading
Media Contacts
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316-529-6800
p.grimes@le-inc.com
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SOURCE Lubrication Engineers, Inc.
FAQ
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