Calumet To Sell Assets Related To Industrial Portion Of Royal Purple Business

buster

buster

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RP will be sold to LE.

(RTTNews) - Calumet (CLMT) has entered into a definitive agreement with a subsidiary of Lubrication Engineers, Inc., a portfolio company of Aurora Capital Partners, to sell assets related to the industrial portion of its Royal Purple business, for $110 million. Key brands within the consumer portion of Royal Purple include: High Performance Motor Oil, HPS, HMX, Max EZ, Max Gear, Max-Clean, XPR, and Duralec Super.
 
I can't help but to speculate the oil co's selling out has a little bit to do with getting out before EV becomes more produced?
 
fantastic said:
I can't help but to speculate the oil co's selling out has a little bit to do with getting out before EV becomes more produced?
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Royal purple’s main market is in speciality synthetic industrial products. You just don’t hear about it as commonplace. They compete directly against likes of Summit-Kluber, HPL’s main market, a bit against Quaker-Houghton, Mobil Industrial, Dubois, etc. They’re just not as talked about in that regard.

The lubricants market is actually poised to grow in the U.S., over the next few years. Primarily led by heavy industrial lubricants and aerospace lubricants (planes & jet engines.)

It’s minor growth, 1-3% a year. But it’s still better than the negative growth that has been seen for a while.

PCEO growth is still down. But it’s flattening out. Demand is only supposed to drop 2-3% or so a year.
 
Foxtrot08 said:
Royal purple’s main market is in speciality synthetic industrial products. You just don’t hear about it as commonplace. They compete directly against likes of Summit-Kluber, HPL’s main market, a bit against Quaker-Houghton, Mobil Industrial, Dubois, etc. They’re just not as talked about in that regard.

The lubricants market is actually poised to grow in the U.S., over the next few years. Primarily led by heavy industrial lubricants and aerospace lubricants (planes & jet engines.)

It’s minor growth, 1-3% a year. But it’s still better than the negative growth that has been seen for a while.

PCEO growth is still down. But it’s flattening out. Demand is only supposed to drop 2-3% or so a year.
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I'm sure you're well more in tune with the bigger picture. Hopefully the sale buyers can expand their markets w/RP.
 
fantastic said:
I'm sure you're well more in tune with the bigger picture. Hopefully the sale buyers can expand their markets w/RP.
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Unfortunately, my gut feeling is that RP’s line up will be further diluted down and cheapened. As that’s what has generally happened in the industry as a whole.

But as one dies, a new one is born. HPL didn’t exist years ago, you know?
 
Foxtrot08 said:
Unfortunately, my gut feeling is that RP’s line up will be further diluted down and cheapened. As that’s what has generally happened in the industry as a whole.

But as one dies, a new one is born. HPL didn’t exist years ago, you know?
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How much more can Royal Purple cheapen their products? They’re already utter crud. I’m sure the last five to ten people still using their motor oil don’t care—they’ll keep buying it as long as it’s... purple. They haven’t made a decent ATF since Dex III was a thing, and their gear oil is the absolute worst. Just take a quick look around the Jeep Wrangler forums if you need a good laugh. I don’t want to talk bad about them, but their products do all the trash-talking for me—and not in a good way.
 
lakestone said:
How much more can Royal Purple cheapen their products? They’re already utter crud. I’m sure the last five to ten people still using their motor oil don’t care—they’ll keep buying it as long as it’s... purple. They haven’t made a decent ATF since Dex III was a thing, and their gear oil is the absolute worst. Just take a quick look around the Jeep Wrangler forums if you need a good laugh. I don’t want to talk bad about them, but their products do all the trash-talking for me—and not in a good way.
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I mean.. Smitty’s exists.
 
lakestone said:
How much more can Royal Purple cheapen their products? They’re already utter crud. I’m sure the last five to ten people still using their motor oil don’t care—they’ll keep buying it as long as it’s... purple. They haven’t made a decent ATF since Dex III was a thing, and their gear oil is the absolute worst. Just take a quick look around the Jeep Wrangler forums if you need a good laugh. I don’t want to talk bad about them, but their products do all the trash-talking for me—and not in a good way.
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Did RP stop selling their racing oil & Duralec HDEO with Synerlec? That always seemed to be their best (& really only decent) oil, their non-API motor oil.
 
Foxtrot08 said:
Nothing. You just asked how far their products can cheapen out. I pointed to Smitty’s because of how cheap their products are, as an example of how far one can go.
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I didn't ask how Royal Purple can cheapen their products. I already know they are. Royal Purple is already going bellow group III for motor oils and other lubes, and they cut back on anti-oxidants and other additives that are harder to detect doing elemental oil analysis. My question was rethorical, in the sense of "how much worse can they get"?
 
bullwinkle said:
Did RP stop selling their racing oil & Duralec HDEO with Synerlec? That always seemed to be their best (& really only decent) oil, their non-API motor oil.
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No idea. I am not a Royal Purple user. Okay, I bought into it a long time ago, but was too cheap to use their product for more than a couple of oil changes. This was like twenny years ago, or so.
 
lakestone said:
...and they cut back on anti-oxidants and other additives that are harder to detect doing elemental oil analysis...
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Anti-oxidants and metal inhibitors and any number of other agents do not show up in a $30.00 analysis because the instrumentation to detect those agents is beyond what a $30.00 lab has available, so you cannot possibly detect if they reduced the treatment levels on those agents.
 
lakestone said:
How much more can Royal Purple cheapen their products? They’re already utter crud. I’m sure the last five to ten people still using their motor oil don’t care—they’ll keep buying it as long as it’s... purple. They haven’t made a decent ATF since Dex III was a thing, and their gear oil is the absolute worst. Just take a quick look around the Jeep Wrangler forums if you need a good laugh. I don’t want to talk bad about them, but their products do all the trash-talking for me—and not in a good way.
Click to expand...
Uhmmm...
 
lakestone said:
How much more can Royal Purple cheapen their products? They’re already utter crud. I’m sure the last five to ten people still using their motor oil don’t care—they’ll keep buying it as long as it’s... purple. They haven’t made a decent ATF since Dex III was a thing, and their gear oil is the absolute worst. Just take a quick look around the Jeep Wrangler forums if you need a good laugh. I don’t want to talk bad about them, but their products do all the trash-talking for me—and not in a good way.
Click to expand...
The Wrangler forums don’t hold a candle to this site even though I see members common to both - I use them “read only” …
 
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