Calumet's Strategic Move: Industrial Business Sold for $110M
Calumet Inc. Completes Sale of Royal Purple Industrial Assets
Calumet, Inc. (NASDAQ: CLMT) has officially concluded its sale of the industrial segment of its Royal Purple business, a strategic move valued at $110 million. This transaction was executed with a wholly owned subsidiary of Lubrication Engineers, Inc., part of the Aurora Capital Partners portfolio. The assets involved relate to Royal Purple's array of high-performance synthetic industrial products.
These products include industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils. The deal also grants an exclusive license to the Royal Purple brand for industrial applications. This sale is significant, as the industrial segment generated approximately $29 million in total sales in the preceding fiscal year.
Retained Assets and Future Plans
While Calumet has partaken in this sizeable transaction, it retains the manufacturing site located in Texas along with the consumer segment of the Royal Purple brand. The consumer side of Royal Purple is well-known and caters to a broad range of automotive applications. With a multi-channel strategy, products are available through leading retail outlets and specialty automotive parts stores. The notable brands under Royal Purple for consumer use include High Performance Motor Oil, HPS®, HMX®, Max EZ®, Max Gear®, Max-Clean®, XPR®, and Duralec Super™.
The proceeds from the sale are intended primarily for reducing the company's debt. This strategic focus aligns with Calumet’s broader objective of maintaining fiscal health while continuing to support its ongoing operations.
Changes to the Equity Offering Program
In light of recent developments, Calumet has also announced the termination of its at-the-market equity offering program. This program, which was initially created to support refinancing efforts, had not been utilized since its announcement in early 2025.
About Calumet Inc.
Calumet, Inc. is engaged in the manufacture, formulation, and marketing of a diverse selection of specialty branded products and renewable fuels. The company's operations cover a broad spectrum of consumer-facing and industrial markets, showcasing its adaptability in a competitive landscape. Headquartered in Indianapolis, Indiana, Calumet operates twelve facilities across North America, solidifying its footprint in the market.
Understanding the Impact of This Sale
Such a strategic sale not only allows Calumet to streamline its operations but also positions the company for sustained future growth. By focusing on its core offerings and addressing its debt, Calumet is setting the stage for an enhanced business model moving forward. With the removal of the industrial aspect, Calumet can now dedicate more resources to its consumer sector and other critical facets of its business.
Frequently Asked Questions
What assets were sold in the recent transaction by Calumet?
Calumet sold its industrial segment of the Royal Purple business, including various high-performance synthetic oil products.
How much was the sale of the Royal Purple industrial assets worth?
The sale was valued at $110 million.
What does Calumet plan to do with the proceeds from the asset sale?
The proceeds will primarily be used to reduce the company's debt.
What products are included in Royal Purple's consumer segment?
The consumer segment includes brands like High Performance Motor Oil, HPS®, HMX®, and Max-Clean®.
Where is Calumet headquartered?
Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities in North America.
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