Warburg Pincus to invest $250m in Montana Renewables

• Gibson, Dunn & Crutcher LLP served as legal advisor to Montana Renewables
• Cleary Gottlieb Steen & Hamilton LLP, Jackson Lewis P.C. and Arnold & Porter Kaye Scholer LLP served as legal advisors to Warburg Pincus
• Warburg Pincus has more than $85 billion in assets under management

Warburg Pincus has agreed to invest $250 million in Montana Renewables LLC, a subsidiary of Calumet Specialty Products Partners LP.

Based in Great Falls, Montana, MRL is a renewable fuel business.

Calumet also announced that Stonebriar Commercial Finance has invested an additional $350 million through a pair of sale and leaseback contracts on top of its existing $50 million commitment to MRL. Concurrent with these transactions, the $300 million convertible investment from Oaktree in MRL has been retired.

Once fully operational, Montana Renewables will use waste feedstocks to produce low-emission alternatives that directly replace fossil fuel products.

“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, executive vice president of Montana Renewables and corporate development. “We would also like to extend our gratitude to Oaktree for their initial investment in MRL. Oaktree’s alignment and support of our vision allowed the launch of this business in 2021.”

Calumet will continue to market the potential share sale to strategic and other investors via the formal process being conducted by Lazard.

Gibson, Dunn & Crutcher LLP served as legal advisor to Montana Renewables. Cleary Gottlieb Steen & Hamilton LLP, Jackson Lewis P.C. and Arnold & Porter Kaye Scholer LLP served as legal advisors to Warburg Pincus.

Calumet manufacturers, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

Warburg Pincus has more than $85 billion in assets under management. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $106 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York.