Lubrication Engineers to Acquire Industrial Brands & Products of Royal Purple
Rhea-AI Summary
Lubrication Engineers (LE) has announced a definitive agreement to acquire the industrial brands and products division of Royal Purple (RPI) from Calumet (NASDAQ: CLMT). The deal will make LE the exclusive manufacturer and seller of Royal Purple®-branded industrial products, while Calumet retains ownership of Royal Purple's consumer division and manufacturing assets.
RPI specializes in premium synthetic performance fluids, lubricants, and greases for industrial applications, including gear oils, bio-environmental lubricants, industrial engine oils, hydraulic lubricants, and compressor oils. The company serves various sectors including manufacturing, power generation, petrochemicals, energy, and marine industries.
This marks LE's first acquisition since partnering with Aurora Capital Partners in September 2023. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.
Positive
- Calumet (CLMT) retains valuable consumer division and manufacturing assets
- Strategic divestment allows CLMT to focus on core consumer business
- Transaction provides potential cash influx for CLMT (value undisclosed)
Negative
- Loss of industrial division revenue stream for CLMT
- Reduction in CLMT's market presence in industrial lubricants sector
News Market Reaction
On the day this news was published, CLMT declined 4.34%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
RPI is a leading designer and manufacturer of premium synthetic performance fluids, lubricants, and greases for diversified industrial applications. RPI's robust portfolio of highly engineered products – which include gear oils, bio-environmental lubricants, industrial engine oils, hydraulic lubricants and compressor oils – are specially designed to improve performance, reduce total cost of ownership, and elongate the useful lives of mission-critical assets. Customers across industries such as manufacturing, power generation, petrochemicals, energy, and marine rely on RPI's proprietary formulations and technical expertise to solve their most important asset reliability challenges. RPI's products are sold to end users and through a robust network of specialty distribution partners.
"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."
This is LE's first acquisition since partnering with Aurora Capital Partners in September 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."
The transaction is expected to close in the first half of 2025 subject to customary closing conditions.
About Lubrication Engineers
A leader in lubricants since 1951, Lubrication Engineers develops, manufactures, and sells premium industrial greases, gear oils, lubricants, and related asset reliability products. LE's highly engineered products directly lower its customers' total cost of ownership through reduced energy consumption, reduced maintenance, and improved equipment longevity. LE services customers in more than 60 countries from its flagship 150,000 sq. ft. manufacturing plant in
About Aurora Capital Partners
Aurora Capital Partners is a leading
Media Contacts
Lubrication Engineers
Paul Grimes
316-529-6800
p.grimes@le-inc.com
ASC Advisors
Taylor Ingraham
203-992-1230
tingraham@ascadvisors.com
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SOURCE Lubrication Engineers, Inc.
FAQ
What industrial products will Lubrication Engineers acquire from Royal Purple?
How will the Royal Purple acquisition affect Calumet (CLMT) shareholders?
When is the Royal Purple industrial division acquisition expected to close?
Which industries are served by Royal Purple's industrial products division?
What happens to Royal Purple's BioMax environmental lubricants after the acquisition?
