Calumet to sell assets related to industrial portion of Royal Purple for $110M

Calumet (CLMT) announced it has entered into a definitive agreement with a wholly owned subsidiary of Lubrication Engineers, a portfolio company of Aurora Capital Partners, to sell assets related to the industrial portion of its Royal Purple business, for $110M. Calumet will retain, and continue to grow, the consumer portion of the Royal Purple business and the Royal Purple production facility in Porter, TX. 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 $29M of total sales. Calumet will retain ownership of the Porter, Texas, manufacturing site and the consumer portion of the Royal Purple business, which caters to a diverse array of automotive product applications through a multi-channel strategy of leading national retail outlets and specialty auto parts stores. Key brands within the consumer portion of Royal Purple include: High Performance Motor Oil, HPS, HMX, Max EZ, Max Gear, Max-Clean, XPR, and Duralec Super. 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.