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Calumet Specialty Products Partners, L.P. Announces Agreement To Acquire Royal Purple, Inc. For Approximately $335 Million

Stocks in this article: CLMT

INDIANAPOLIS, June 6, 2012 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet") (NASDAQ: CLMT) announced today that it has signed a definitive agreement to acquire Royal Purple, Inc. ("Royal Purple"), for total consideration of approximately $335 million, subject to customary purchase price adjustments (the "Royal Purple Acquisition"). The Royal Purple Acquisition is expected to close by the middle of July 2012, subject to customary closing conditions and regulatory approval.

Royal Purple is a manufacturer of high performance lubricants primarily for automotive, industrial, marine, motorcycle and racing applications.

"Calumet is very excited to be adding the Royal Purple product line to our portfolio of specialty products," said Bill Grube, Calumet's Chief Executive Officer.  "Royal Purple has an extensive specialty product line serving the industrial and consumer automotive markets.  They also have a very experienced and dedicated workforce and we are looking forward to working with them."

"Everyone at Royal Purple is excited about becoming part of Calumet," said Lee Culbertson, Royal Purple's President and Chief Executive Officer.  "We believe Calumet shares Royal Purple's vision and commitment to excellence and will greatly assist in our continued growth."

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 $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 for such long-term debt financing.  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 Royal Purple Acquisition. Hallett & Perrin, P.C. is acting as legal counsel to Royal Purple. Cleary Gull Inc. is acting as financial advisor to Royal Purple.

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