Calumet Sells Industrial Assets of Royal Purple Business to Lubrication Engineers
Calumet, Inc., a leading independent petroleum products marketing and logistics company, has recently made headlines with its decision to sell certain assets related to the industrial portion of its Royal Purple® business. This transaction was announced on February 28, 2025, and was made with a wholly owned subsidiary of Lubrication Engineers, Inc., a portfolio company of Aurora Capital Partners.
The Deal: $110 Million for the Industrial Assets
The agreement, which is valued at $110 million, will see Calumet transferring ownership of specific assets related to its industrial Royal Purple business to Lubrication Engineers. These assets include inventory, customer contracts, and other related items.
Calumet Retains Consumer and Production Assets
Despite the sale, Calumet remains committed to the consumer portion of the Royal Purple business and the production facility located in Porter, TX. This portion of the business is dedicated to producing and marketing high-performance lubricants for automotive, industrial, and marine applications.
Impact on Consumers: No Change in Service
For consumers, this sale should not result in any noticeable changes. Calumet remains the owner and operator of the consumer portion of the Royal Purple business, which will continue to provide high-quality lubricants to customers. The Porter, TX production facility will also continue to manufacture these products.
Impact on the Industry: Strategic Moves and Consolidation
On a larger scale, this sale represents a strategic move for both Calumet and Lubrication Engineers. For Calumet, it allows the company to focus on its core business segments, including petroleum products marketing and logistics. For Lubrication Engineers, the acquisition of Royal Purple’s industrial assets strengthens its position in the lubricants market.
Aurora Capital Partners: Continued Growth
Aurora Capital Partners, the private equity firm behind Lubrication Engineers, has a history of investing in and growing businesses within the industrial sector. The acquisition of Royal Purple’s industrial assets is expected to be another step in their continued growth strategy.
Conclusion: Calumet and Lubrication Engineers Shape the Future of the Lubricants Industry
In summary, Calumet’s decision to sell certain assets of its Royal Purple business to Lubrication Engineers marks a strategic move for both companies. Calumet will continue to focus on its core business segments, while Lubrication Engineers strengthens its position in the lubricants market. Consumers should not notice any changes in service, as Calumet remains the owner and operator of the consumer portion of the Royal Purple business. The lubricants industry continues to evolve, and these companies are shaping its future.
- Calumet sells industrial assets of Royal Purple business to Lubrication Engineers for $110 million
- Calumet retains consumer portion and production facility
- Impact on consumers: no change in service
- Impact on industry: strategic moves and consolidation
- Aurora Capital Partners: continued growth
