Calumet buying Royal Purple for about $335MPetroleum refiner Calumet Specialty Products Partners LP is buying high performance lubricants maker Royal Purple Inc. for about $335 million.
By: The Associated Press, Superior Telegram
INDIANAPOLIS (AP) — Petroleum refiner Calumet Specialty Products Partners LP is buying high performance lubricants maker Royal Purple Inc. for about $335 million.
Calumet shares climbed 5 percent in morning trading on word of the deal.
Royal Purple makes lubricants mostly for automotive, industrial, marine, motorcycle and racing applications.
Calumet said Wednesday that it will fund the deal with available cash, borrowings under a senior secured revolving credit facility and possibly other long-term debt financing.
The transaction is targeted to close by the middle of July.
Last month Indianapolis-based Calumet reported that its first-quarter profit climbed on higher sales, better prices, and gains in the value of derivatives.
Shares of Calumet gained $1.07, or 5 percent, to $22.75 in morning trading Wednesday. It shares traded as high as $27.74 in early May. Their 52-week low was $15.99 set in October 2011.