Calumet Specialty Products Partners, L.P. to Acquire Anchor Drilling Fluids USA, Inc.

INDIANAPOLIS, April 6, 2014 /PRNewswire/ — Calumet Specialty Products
Partners, L.P. (NASDAQ: CLMT) (“Calumet” or the “Partnership”) a leading
independent producer of specialty hydrocarbon and fuel products, today announced
that it has entered into a definitive agreement to acquire ADF Holdings, Inc.,
the parent company of Tulsa, Oklahoma-based Anchor Drilling Fluids USA, Inc.
(“Anchor”) on a debt-free basis for total cash consideration of approximately
$235 million, subject to customary purchase price adjustments. Calumet expects
to close the acquisition of Anchor by March 31, 2014, subject to customary
closing conditions.

Privately-held Anchor, established by Bob and Phil West in 2005, is a leading
independent provider of drilling fluid solutions, completion fluids and
production chemicals to the oil and gas industry with more than 30
manufacturing, mixing, storage and distribution facilities in 13 states. Anchor
designs, manufactures and sells its products to approximately 250 exploration
and production (“E&P”) companies operating in some of the most active
conventional and unconventional oil and gas resource plays in North America,
including the Bakken, Barnett, Eagle Ford, Fayetteville, Granite Wash,
Haynesville, Marcellus, Niobrara, Permian, Piceance, Uinta and Utica.

Anchor develops custom formulations and innovative solutions based on unique
customer and well specifications. Through its extensive line of drilling and
completion fluids, Anchor delivers solutions that reduce drilling and completion
time, help to control reservoir formation pressures and maximize oil and gas
production, contributing to improved well economics for end-users.

This transaction positions Calumet as one of the leading suppliers of drilling
fluids to the domestic E&P industry, a sector that continues to enjoy rapid
growth due to advances in drilling technology and increased exploration activity
in identified and emerging unconventional resource plays. The addition of Anchor
to Calumet’s asset portfolio will also serve to increase the Partnership’s
specialty products sales in a business that generates consistent cash flow with
limited ongoing capital investment.

For the year ended December 31, 2012, Anchor generated earnings before interest,
taxes, depreciation and amortization (“EBITDA”) of approximately $26.3 million.
The Partnership currently anticipates that Anchor will report a year-over-year
increase in EBITDA of approximately 20% for the full-year 2013. The Partnership
intends to finance the acquisition through the issuance of debt securities or
through borrowings under its revolving credit facility.

“With the acquisition of Anchor, Calumet will become a leading independent
producer and marketer of drilling fluid solutions in the United States,” stated
Jennifer Straumins, President and COO of Calumet. “During the past decade, North
America has witnessed a surge in oil and gas production, supported by the
application of advanced drilling techniques in unconventional resource plays.
Anchor’s market leading position as an established independent producer of
drilling fluids, coupled with its deep base of established customers and
expansive distribution network, position it as a key beneficiary of the trend
toward increased exploration and production spending.”

“We believe the execution of a vertical integration strategy – one that puts us
closer to our crude oil suppliers and customers – represents a long-term
competitive advantage for the Partnership. As a key supplier of drilling fluids
to oil and gas producers in the field, the Anchor acquisition helps to further
expand our relationships at the wellhead.”

Straumins concluded: “We welcome Anchor’s more than 400 employees to the Calumet
family and look forward to building upon their legacy of consistent, profitable

Latham & Watkins LLP acted as legal counsel to Calumet with respect to this

About Calumet Specialty Products Partners, L.P.

Calumet 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, waxes
and asphalt used in consumer, industrial and automotive products. Calumet also
produces fuel products including gasoline, diesel and jet fuel. Calumet is based
in Indianapolis, Indiana and has twelve facilities located in northwest
Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas,
New Jersey and eastern Missouri. For more information, please visit

Safe Harbor Statement

Certain statements and information in this press release may constitute
“forward-looking statements”, including statements related to the acquisition of
Anchor, the projected year-over-year EBITDA increase stemming from Anchor’s
operations and the anticipated plans to finance the acquisition. The words
“believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,”
“would,” “could” or other similar expressions are intended to identify
forward-looking statements, which are generally not historical in nature. These
forward-looking statements are based on our current expectations and beliefs
concerning future developments and their potential effect on us. While
management believes that these forward-looking statements are reasonable as and
when made, there can be no assurance that future developments affecting us will
be those that we anticipate. All comments concerning our expectations for future
sales and operating results are based on our forecasts for our existing
operations and do not include the potential impact of any future acquisitions.
Our forward-looking statements involve significant risks and uncertainties (some
of which are beyond our control) and assumptions that could cause actual results
to differ materially from our historical experience and our present expectations
or projections. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include: the overall
demand for specialty hydrocarbon products, fuels and other refined products; our
ability to produce specialty products and fuels that meet our customers’ unique
and precise specifications; the impact of fluctuations and rapid increases or
decreases in crude oil and crack spread prices, including the resulting impact
on our liquidity; the results of our hedging and other risk management
activities; our ability to comply with financial covenants contained in our debt
instruments; the availability of, and our ability to consummate, acquisition or
combination opportunities and the impact of any completed acquisitions; labor
relations; our access to capital to fund expansions, acquisitions and our
working capital needs and our ability to obtain debt or equity financing on
satisfactory terms; successful integration and future performance of acquired
assets, businesses or third-party product supply and processing relationships;
our ability to timely and effectively integrate the operations of recently
acquired businesses or assets, particularly those in new geographic areas or in
new lines of business; environmental liabilities or events that are not covered
by an indemnity, insurance or existing reserves; maintenance of our credit
ratings and ability to receive open credit lines from our suppliers; demand for
various grades of crude oil and resulting changes in pricing conditions;
fluctuations in refinery capacity; our ability to access sufficient crude oil
supply through long-term or month-to-month evergreen contracts and on the spot
market; the effects of competition; continued creditworthiness of, and
performance by, counterparties; the impact of current and future laws, rulings
and governmental regulations, including guidance related to the Dodd-Frank Wall
Street Reform and Consumer Protection Act; shortages or cost increases of power
supplies, natural gas, materials or labor; hurricane or other weather
interference with business operations; our ability to access the debt and equity
markets; accidents or other unscheduled shutdowns; and general economic, market
or business conditions. For additional information regarding known material
factors that could cause our actual results to differ from our projected
results, please see our filings with Securities and Exchange Commission (“SEC”),
including our 2013 Annual Report on Form 10-K and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date they are made. We undertake no obligation to
publicly update or revise any forward-looking statements after the date they are
made, whether as a result of new information, future events or otherwise.

SOURCE Calumet Specialty Products Partners, L.P.

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