HOUSTON (ICIS)--Calumet Specialty Products Partners has signed a definitive agreement to acquire Royal Purple for total consideration of approximately $335m (€268m), the US specialty refiner said on Wednesday.
The acquisition of Texas-based Royal Purple is expected to close by the middle of July, Calumet said.
Royal Purple is a manufacturer of high performance lubricants primarily for automotive, industrial, marine, motorcycle and racing applications.
"Royal Purple has an extensive specialty product line serving the industrial and consumer automotive markets," said Bill Grube, Calumet's chief executive.
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 said it intends to finance the acquisition through a combination of cash on hand, borrowings under its senior secured revolving credit facility and potentially other long-term debt financing. Calumet's obligation to consummate the Royal Purple acquisition is not conditioned upon the receipt of financing, Calumet said.
Indiana-based Calumet is a producer of specialty hydrocarbon products and processes crude oil and other feedstocks into customised lubricating oils, solvents, waxes and asphalt used in consumer, industrial, and automotive products.
Calumet also produces fuel products including gasoline, diesel and jet fuel.
Calumet has eight plants located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeast Texas and eastern Missouri.