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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Calumet Inc. is planning to sell the industrial portion of its Royal Purple business to Lubrication Engineers Inc. in Wichita, Kansas, the company announced Monday. The deal is valued at $110 million.
The sale includes Royal Purple’s synthetic industrial product line, which encompasses gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils. It also includes an exclusive license of the brand for industrial applications, Calumet said.
Calumet said Royal Purple’s industrial business generated $29 million in total sales in 2024. CEO Todd Borgmann called the sale a “strategic fit across the board.”
“After executing upon a number of strategic catalysts over the past year, Calumet’s top priority is deleveraging our balance sheet, which this deal accelerates,” Borgmann said in a news release. “The Royal Purple industrial team is joining a great company, and I want to thank all of those employees who have worked to make Royal Purple’s industrial business the success it is today.”
Calumet, formerly known as Calumet Specialty Products Partners, plans to use the proceeds from the sale to pay down debt.
Royal Purple’s products are produced at a facility in Porter, Texas, and Calumet will retain ownership of the plant. The company will also continue to own and manage the consumer portion of the Royal Purple business.
A spokesperson for Calumet said 13 employees will transition to Lubrication Engineers, though only two are located in Indiana.
The sale is expected to close in the first half of 2025.
Calumet is the 13th-largest public company in Indiana with $4.2 billion in revenue in 2023, according to IBJ research. The company employs approximately 9,100 people across its entire footprint.
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