Lubrication Engineers Expands Portfolio with Royal Purple Acquisition

Lubrication Engineers Makes Strategic Move with Royal Purple Acquisition

In a significant development within the industrial lubricants market, Lubrication Engineers, Inc. (LE) has announced a definitive agreement to acquire the industrial brands and products of Royal Purple (RPI). Known for its exceptionally engineered synthetic lubricants and greases, Royal Purple has built a reputation for providing high-performance solutions across various industries, including manufacturing, energy, and marine sectors.

As part of this acquisition, LE will gain exclusive manufacturing rights, enabling it to market Royal Purple-branded industrial products. Meanwhile, Calumet, Inc. will maintain ownership of the consumer segment of Royal Purple and its associated manufacturing assets. This strategic acquisition is poised to enhance LE's already robust portfolio of industrial lubricants and reliability solutions, further affirming its position as a leader in the industry.

Enhancing Product Offerings

Royal Purple has established itself as a premier designer and manufacturer of specialty synthetic lubricants. Their extensive product line, which includes gear oils, hydraulic lubricants, and bio-environmental options, is designed to optimize performance and extend the lifespan of critical machinery. LE plans to capitalize on this expertise and customer trust to drive growth and innovation in the industrial lubricants sector.

Eric Borland, the Chief Executive Officer of LE, expressed his enthusiasm over the acquisition, stating, "We are thrilled to add the highly regarded Royal Purple brand of premium synthetic industrial solutions to LE's product portfolio. Together with RPI's RD, sales, and marketing teams, we are committed to partnering with RPI's existing end users, distribution partners, and suppliers to ensure the continued delivery of high-quality products and services to the marketplace."

With this acquisition, LE aims to leverage its technical know-how alongside RPI’s exceptional formulations to develop new and exciting products that cater to both current and prospective customers. Notably, this includes products under RPI's BioMax brand, which focuses on environmentally-friendly lubricants.

Alignment with LE's Strategic Goals

This move marks LE's first acquisition since it partnered with Aurora Capital Partners in September 2023. Randy Moser, a Partner at Aurora Capital, commented on the acquisition, emphasizing its alignment with LE’s core strategy. He noted that RPI fits perfectly with LE's commitment to delivering ultra-premium, maintenance, repair, and operational (MRO)-oriented industrial lubricants. Moser mentioned, "We appreciate Calumet's impressive stewardship of the Royal Purple brand over the past decade and are eager to invest in the next phase of growth in product development and customer service."

The anticipated closing of this transaction is set for the first half of 2025, pending customary closing conditions. As Lubrication Engineers embarks on this new chapter, the company is poised to enhance its manufacturing capabilities and expand its reach in the global market, with a promise of improved operational efficiencies for their customers.

About Lubrication Engineers

Founded in 1951, Lubrication Engineers has established itself as a frontrunner in the lubricants industry by developing and selling premium greases and lubricants that are engineered to reduce maintenance costs and enhance equipment longevity. LE's manufacturing facility in Wichita, Kansas, serves over 60 countries, further establishing its far-reaching capabilities. For more information on their product offerings, visit Lubrication Engineers.

About Aurora Capital Partners

Aurora Capital Partners is a Los Angeles-based private equity firm managing approximately $6 billion in assets. Known for investing in middle-market companies, Aurora focuses on firms with solid market positions and stable growth dynamics. More information can be found at Aurora Capital Partners.