Calumet Specialty Products Partners LP (NASDAQ: CLMT) announced March 26 that it has entered into a definitive agreement to acquire ADF Holdings Inc., the parent company of Tulsa, Okla.-based Anchor Drilling Fluids USA Inc., for $235 million.

This transaction positions Calumet as one of the leading suppliers of drilling fluids to the domestic E&P industry. 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.

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 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.

For 2012, Anchor generated EBITDA of some $26.3 million. The partnership currently anticipates that Anchor will report a year-over-year increase in EBITDA of 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.

Based in Indianapolis, Calumet is a leading independent producer of specialty hydrocarbon and fuel products. Calumet acquired Anchor on a debt-free basis. The acquisition is expected to close by March 31.