Lubrication Engineers (LE), a developer and manufacturer of high-performance industrial lubricants, has entered a definitive agreement with specialty products manufacturer Calumet to acquire the industrial portion of its Royal Purple business. The $110 million deal will provide LE with a portfolio of specialty synthetic performance lubricants and greases for industrial applications. At the same time, Calumet will retain the consumer portion of the Royal Purple business as well as the company’s production facility in Porter, Texas.
Once the deal is final, LE will become the exclusive manufacturer and seller of Royal Purple-branded industrial products, including a high-performance synthetic industrial product line that features industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils. The company will also hold an exclusive brand license for industrial applications. According to LE, the products are designed to improve performance, reduce total cost of ownership, and elongate the useful lives of mission-critical assets.
Royal Purple’s industrial products are used in multiple markets, such as manufacturing, power generation, petrochemicals, energy, and marine. The products are sold directly to end users and through a network of specialty distribution partners.
According to Calumet, Royal Purple’s industrial segment generated some $29 million in total sales last year.
The deal is LE’s first acquisition since partnering with Aurora Capital Partners in September 2023. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.
Calumet plans to use the sale proceeds to primarily pay down debt.
The consumer portion of the Royal Purple business that Calumet will retain caters to automotive product applications. Some of the company’s key brands include High Performance Motor Oil, HPS, HMX, Max EZ, Max Gear, Max-Clean, XPR, and Duralec Super.