Lubrication Engineers to acquire Royal Purple’s industrial brands
Lubrication Engineers, Inc. (LE), a leading manufacturer of high-performance industrial lubricants, has entered into a definitive agreement to acquire the industrial brands and product line of Royal Purple (RPI) from Calumet, Inc. (NASDAQ: CLMT) for USD110 million. Upon completion, LE will become the exclusive manufacturer and distributor of Royal Purple®-branded industrial products, while Calumet will retain ownership of the consumer segment and its manufacturing facility in Porter, Texas, U.S.A.
RPI is a well-established provider of premium synthetic lubricants, offering a diverse range of products including industrial gear lubricants, bio-environmental lubricants, hydraulic fluids, compressor oils, and stationary natural gas engine oils. These specialised formulations enhance performance, extend equipment lifespan, and reduce the total cost of ownership for industries such as manufacturing, power generation, petrochemicals, energy, and marine.
“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.”
The acquisition marks LE’s first major transaction since partnering with private equity firm Aurora Capital Partners in 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.”
During the year ending 31 December 2024, Royal Purple’s industrial business generated approximately USD29 million in total sales. The transaction includes an exclusive licence of the Royal Purple® brand for industrial applications but does not encompass the consumer-oriented automotive product line. Calumet will retain and continue to expand the consumer segment, which includes leading brands such as High Performance Motor Oil, HPS®, HMX®, Max EZ®, Max Gear®, Max-Clean®, XPR®, and Duralec Super™.
Proceeds from the sale will be used primarily to reduce Calumet’s debt.
“This transaction is a strategic fit across the board,” said Todd Borgmann, CEO. “After executing upon a number of strategic catalysts over the past year, Calumet’s top priority is deleveraging our balance sheet, which this deal accelerates. The Royal Purple industrial team is joining a great company, and I want to thank all of those employees who have worked to make Royal Purple’s industrial business the success it is today.”
Calumet engaged Moelis & Company LLC as its exclusive financial advisor for the transaction, with Faegre Drinker serving as M&A counsel. The deal is expected to close in the first half of 2025, subject to customary regulatory approvals.
About Lubrication Engineers
Founded in 1951, Lubrication Engineers is a global leader in industrial lubrication and asset reliability solutions. The company manufactures high-performance lubricants designed to reduce energy consumption, maintenance costs, and extend equipment lifespan. LE operates in more than 60 countries from its 150,000-square-foot manufacturing facility in Wichita, Kansas, U.S.A.
About Aurora Capital Partners
Aurora Capital Partners, headquartered in Los Angeles, California, USA, is a private equity firm managing approximately $6 billion in assets. It invests in middle-market companies with strong growth potential and market leadership.
About Calumet
Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and markets a diverse portfolio of specialty branded products and renewable fuels, serving both consumer and industrial markets. The company is headquartered in Indianapolis, Indiana, and operates 12 facilities throughout North America.
