June 6 Calumet Specialty Products LP
will buy privately held Royal Purple Inc for about $335 million
to bulk up its lubricants offering.
Royal Purple makes high-performance lubricants primarily for
automotive, industrial, marine, motorcycle and racing
Calumet, which makes lubricating oils, solvents, waxes and
asphalt, expects the deal to close by the middle of July.
Indianapolis, Indiana-based Calumet will finance the deal
with cash on hand and borrowings.
Royal Purple will be converted into a limited liability
company, and Calumet will acquire 100 percent of the membership
interests to effect the deal, the company said in a statement.
Shares of Calumet, which has a market value of $1.25
billion, were up 3 percent in early trade on Wednesday.