Paralogics, LLC acquisition strengthens wax blending, packaging and distribution capability
INDIANAPOLIS, March 2, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced the Partnership completed the acquisition of Paralogics, LLC, a producer of candle and industrial wax blends. Paralogics expands Calumets presence in the specialty wax blending and packaging market, and upon integrating the new capabilities into Calumet's existing wax business value chain, will add 20 million pounds of annual blending and formulating capabilities.
"I'm pleased to announce the acquisition of Paralogics and its alignment with the Partnership's Specialty-focused growth strategy," said Scott Obermeier, EVP Commercial of Calumet. "Paralogics is a natural fit with our current wax business, and further enhances our capabilities and presence in specialty wax markets. This strategic bolt-on will enable Calumet to more efficiently access higher-margin end markets, extend our value chain into packaging and blending, and add additional technical expertise in developing formulations for higher margin end markets. In addition to its commercial synergies, the acquisition also improves our operations by bringing in an additional logistics hub to our geographic footprint, allowing us to better control transportation and freight costs."
Obermeier added, "We are excited about the Paralogics platform and the added capabilities and expertise it brings to our wax business. This acquisition is representative of our strategy of expanding our portfolio in high-value niche areas that offers synergistic value to our existing presence. We are excited about the asset and its alignment with our Specialty growth strategy."
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a master limited partnership and a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products; produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
About Paralogics, LLC
Paralogics is a wax production company, specializing in candle and industrial waxes, as well as customized blending, slabbing, and quality testing, and warehousing. The company was founded by entrepreneurs Jim and Kiersten Neal. After two decades of perfecting their candle wax, they founded Paralogics, expanding into large-scale, precision paraffin-soy wax candle blends and offering their expertise to create consistently high-quality wax products that meet customer specifications. The company is located in Muncie, Indiana.
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SOURCE Calumet Specialty Products Partners, L.P.