Base oil refiner Calumet is selling the industrial segment of its lubricant brand Royal Purple to Lubrication Engineers Inc.
The past two years have been a financial rollercoaster for the company. It reported a net loss of U.S. $222 million, down from profit of $47.1 million in 2023. Net losses for 2022 were $173.3 million.
Calumet is retaining the Royal Purple brand’s consumer product portfolio and the plant in Texas where the famous purple-dyed lubricant is made.
The sale, worth $110 million, will include industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants and compressor oils, as well as the exclusive license, according to a press release.
Calumet’s performance in base oil production was healthy, and up by nearly a fifth in 2024.
The Indiana refiner made an average of 12,174 barrels per day, according to Platts. This was 18% above results for full year 2023, Calumet announced. Toward the end of the year, there was a slight uptick to 12,804 bbl/d in the fourth quarter of 2024.