Warburg Pincus to Invest $250 Mn in Montana Renewables

Calumet Specialty Products Partners, L.P. announced a series of transactions conducted by its unrestricted subsidiary Montana Renewables LLC (MRL), a renewable fuel business.

Warburg Pincus, a leading global growth investor, has agreed to invest $250 million in MRL in the form of a participating preferred equity security, which values MRL at a pre-commissioning enterprise value of $2.25 billion.

The preferred equity investment is not interest-bearing and carries certain minimum return thresholds. In connection with the investment, Warburg Pincus will have a representative on MRL's four-member board of managers. 

"This investment will accelerate our mission to quickly produce low-emission alternatives that directly replace fossil fuel products. We are pleased to partner with Warburg Pincus, a world class institutional investor, as well as to extend our longstanding multi-site relationship with Stonebriar" said Bruce Fleming, EVP Montana Renewables and Corporate Development.

Todd Borgmann, CEO of Calumet added "Stonebriar Commercial Finance, an Eldridge business, has been a collaborative, creative, and valued business partner to Calumet and MRL, and we are excited to grow that partnership through their additional investment into MRL. Montana Renewables is now fully capitalized with a healthy balance sheet as we approach startup in the near future and the identified organic growth opportunities shortly thereafter."

"Stonebriar is pleased to continue our partnership with Montana Renewables and to expand our investments in decarbonization and more sustainable opportunities," said Nicholas Sandler, President of Stonebriar. "This transaction demonstrates Stonebriar's commitment to providing comprehensive solutions to our customers."