INDIANAPOLIS, March 2, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (CLMT) - Get Calumet Specialty Products Partners, L.P. Report (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced the Partnership completed the acquisition of Paralogics, LLC, a producer of candle and industrial wax blends. Paralogics expands Calumets presence in the specialty wax blending and packaging market, and upon integrating the new capabilities into Calumet's existing wax business value chain, will add 20 million pounds of annual blending and formulating capabilities.
"I'm pleased to announce the acquisition of Paralogics and its alignment with the Partnership's Specialty-focused growth strategy ," said Scott Obermeier, EVP Commercial of Calumet. "Paralogics is a natural fit with our current wax business, and further enhances our capabilities and presence in specialty wax markets. This strategic bolt-on will enable Calumet to more efficiently access higher-margin end markets, extend our value chain into packaging and blending, and add additional technical expertise in developing formulations for higher margin end markets. In addition to its commercial synergies, the acquisition also improves our operations by bringing in an additional logistics hub to our geographic footprint, allowing us to better control transportation and freight costs."
Obermeier added, "We are excited about the Paralogics platform and the added capabilities and expertise it brings to our wax business. This acquisition is representative of our strategy of expanding our portfolio in high-value niche areas that offers synergistic value to our existing presence. We are excited about the asset and its alignment with our Specialty growth strategy."
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (CLMT) - Get Calumet Specialty Products Partners, L.P. Report is a master limited partnership and a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products; produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
About Paralogics, LLC
Paralogics is a wax production company, specializing in candle and industrial waxes, as well as customized blending, slabbing, and quality testing, and warehousing. The company was founded by entrepreneurs Jim and Kiersten Neal. After two decades of perfecting their candle wax, they founded Paralogics, expanding into large-scale, precision paraffin-soy wax candle blends and offering their expertise to create consistently high-quality wax products that meet customer specifications. The company is located in Muncie, Indiana.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) our expectation regarding our business outlook and transformation efforts, (ii) our expectation regarding expense reduction plans and (iii) statements regarding future Adjusted EBITDA contributions attributable to Phase II of our multi-year self-help program. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or dispositions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products that meet our customers' unique and precise specifications; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the costs of complying with the Renewable Fuel Standard, including the prices paid for RINs; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; accidents or other unscheduled shutdowns; and general economic, market or business conditions.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
SOURCE Calumet Specialty Products Partners, L.P.