Calumet Specialty acquires wax production company Paralogics
Calumet Specialty Products Partners, an Indiana-based producer of specialty hydrocarbon and fuels products, has wrapped up the acquisition of Paralogics, a producer of candle and industrial wax blends.
Financial terms of the deal were not disclosed.
Paralogics specializes is also engaged in customized blending, slabbing, and quality testing, and warehousing of wax. The wax production, based in Muncie, Indiana was established by entrepreneurs Jim Neal and Kiersten Neal.
Calumet Specialty Products Partners, through the acquisition of Paralogics, is said to expand its footprint in the specialty wax blending and packaging market. Following the integration of the new capabilities into its existing wax business value chain, Calumet Specialty Products Partners will gain 20 million pounds of annual blending and formulating capabilities.
Scott Obermeier – EVP Commercial of Calumet Specialty Products Partners said: “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.”