Indianapolis-based Calumet Specialty Products Partners LP (Nasdaq: CLMT) is expanding its industrial wax production with the acquisition of Muncie-bsed Paralogics LLC.
Calumet says the purchase expands its footprint in the wax blending and packaging markets by adding 20 million pounds of annual production.
“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,” said Scott Obermeier, executive vice president, commercial division, Calumet.
Paralogics started about 20 years ago as a candle making company. Unhappy with what was available for wax supplies, the company formulated its own blend that met their quality standards.
It grew into what the company is today, specializing in was blending and slab production.
“This acquisition is representative of our strategy of expanding our portfolio in high-value niche areas that offers synergistic value to our existing presence,” said Obermeier.
Obermeier says with the purchase, Calumet also gains a logistics hub to help control transportation and freight costs.