IBJNews

Calumet buying Royal Purple for about $335 million

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Petroleum refiner Calumet Specialty Products Partners LP is buying high-performance lubricants maker Royal Purple Inc. for about $335 million, the companies announced Wednesday morning.

Calumet shares climbed 5 percent in morning trading on word of the deal.

Porter, Texas-based Royal Purple makes lubricants mostly for automotive, industrial, marine, motorcycle and racing applications.

Calumet said Wednesday that it will fund the deal with available cash, borrowings under a senior secured revolving credit facility and possibly other long-term debt financing.

The transaction is targeted to close by the middle of July.

Last month, Calumet reported that its first quarter profit climbed to $51.9 million on $1.2 billion in sales. Also last month, the company announced plans to expand its Indianapolis headquarters, adding 48 jobs to its current local work force of 75 by 2015.

Shares of Calumet gained $1.07, or 5 percent, to $22.75 in morning trading Wednesday. It shares traded as high as $27.74 in early May. Their 52-week low was $15.99 set in October 2011.

Calumet began operations in 1990 with the acquisition of a specialty lubricants refinery in northwest Louisiana and a distribution terminal in Burnham, Ill. The company now operates five additional plants in Louisiana, Pennsylvania, Texas, Wisconsin and Missouri.

The company raised more than $150 million in a secondary stock offering last month to help fund growth.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT