Calumet Specialty Products Partners, L.P. last Wednesday 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. 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 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.

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 growth."

Earlier this month, Calumet announced that it was acquiring Gilbert, Arizona-based United Petroleum Company, a wholesale supplier and distributor of its Quantum-branded oils, coolants and greases into the passenger car, heavy duty truck, farming and industrial end-markets.

Within the past couple years, Calumet also acquired the Bel-Ray Company, a New Jersey-based manufacturer and global distributor of high-performance lubricants; synthetic lubricant manufacturer Royal Purple; TruSouth Oil, LLC, a specialty petroleum packaging and distribution company located in Shreveport, Louisiana; and the aviation and refrigerant lubricants business, a polyol/ester-based synlubes business, from Hercules Incorporated, a subsidiary of Ashland, Inc. that included a manufacturing facility in Louisiana, MO.