Indianapolis-based Calumet Specialty Products Partners LP (Nasdaq: CLMT) has announced the sale of its subsidiary, Oklahoma-based Anchor Drilling Fluids USA LLC, to Q’Max America Inc in Houston. Calumet will receive approximately $84 million in considerations as a result of the deal.
The company says the value of the sale includes $50 million in cash, $15 million to be paid over the next two years for net working capital, and 10 percent equity ownership of Q’Max’s parent, Fluid Holding Corp. Chief Executive Officer Tim Go says the sale is another step forward in the company’s plans to strengthen its balance sheet and focus on its core specialty products business.
The merger of Q’Max and Anchor Drilling Fluids will create the largest independent drilling fluids company in the United States," said Go. "We expect the value of our minority stake in Q’Max to continue to track the oilfield services recovery, as well as benefit from the operational and supply chain synergies created through the new entity’s increased scale and scope."
The announcement comes less than a month after Calumet completed the sale of its Superior Refinery in Wisconsin to Husky Energy Inc. in Canada in a $492 million deal. Last week, the company announced it had received a notice of non-compliance from the Nasdaq for failing to file its most recent quarterly earnings report.