Calumet Selling Wisconsin Refinery
INDIANAPOLIS - Indianapolis-based Calumet Specialty Products Partners LP (Nasdaq: CLMT) has agreed to sell its Superior Refining operation in Wisconsin to Husky Energy Inc. of Canada. The deal is valued at $435 million and expected to close in the fourth quarter. Husky says it will retain the nearly 180 workers at the facility.
The Canadian company plans to make investments into the facility. Calumet says the deal is in line with efforts to refocus its portfolio on "specialty markets where (the) company is competitively advantaged." The Wisconsin refinery produces gasoline, diesel, asphalt and heavy fuel oils.
Calumet Chief Executive Officer Tim Go says "the divestiture of our Superior refinery is in line with Calumet's strategic vision to become the premier specialty petroleum products company in the world. This transaction provides both financial and strategic benefits for our unitholders, as we further position Calumet to move forward on our stated objectives including strengthening our balance sheet, lowering our leverage, and freeing up capital resources that will allow us to better invest and fund future EBITDA enhancing growth strategies within our core Specialties portfolio. The transaction also reduces our go-forward exposure to commodity pricing and volatility."
Earlier this month, the company reported a second quarter net income of $9.6 million, compared to a loss of $148 million during the same period a year earlier.