Calumet Specialty Products Partners, L.P. to acquire Royal Purple

Calumet Specialty Products Partners, L.P. said it has signed a definitive agreement to acquire Royal Purple, Inc. for approximately US$335 million, subject to customary purchase price adjustments. Royal Purple, a privately held company based in Porter, Texas, U.S.A., is a manufacturer of high-performance lubricants primarily for automotive, industrial, marine, motorcycle and racing applications. Calumet, a master limited partnership, is a leading independent producer of high-quality, specialty hydrocarbon products in North America, including lubricating oils, solvents, waxes and asphalt used in consumer, industrial, and automotive products. It is based in Indianapolis, Indiana, U.S.A., and has eight plants located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeastern Texas and eastern Missouri. Pursuant to the agreement, Royal Purple will be converted into a limited liability company, and Calumet will acquire 100% of its membership interests at the closing. Calumet intends to finance the Royal Purple acquisition through a combination of cash on hand (including a portion of the approximately US$149 million of net proceeds from its recently completed common unit offering), borrowings under its senior secured revolving credit facility and potentially other long-term debt financing, subject to market conditions. Calumet’s obligation to consummate the Royal Purple acquisition is not conditioned upon the receipt of financing. Latham & Watkins LLP is acting as legal counsel to Calumet with respect to the acquisition. Hallett & Perrin, P.C. is acting as legal counsel to Royal Purple. Cleary Gull Inc. is acting as financial advisor to Royal Purple. The acquisition is expected to close by the middle of July.