Company Overview - Calumet generated revenue of $4.05 billion and reported a net income of -$37.20 million for the trailing twelve months [5] - The company's stock price as of Monday was $20.07, reflecting a one-year price change of -2% [5] Recent Developments - Alta Fundamental Advisers fully exited its position in Calumet by selling 459,937 shares, resulting in a net position change of $7.25 million [2][3][7] - This sale reduced Alta's stake in Calumet from approximately 3.71% of its reportable assets under management [3] Market Performance - As of the latest data, Calumet's shares were priced at $20.07, which is underperforming compared to the S&P 500, which has increased by 16% over the past year [4] Business Operations - Calumet specializes in manufacturing and marketing a range of specialty branded products, including solvents, lubricating oils, and renewable fuels [9][10] - The company serves various sectors, including industrial manufacturers, transportation, energy, and retail consumers [10] Financial Insights - Calumet recently reported a significant quarter with $313 million in net income and $92.5 million in adjusted EBITDA, driven by record margins in its Specialty Products segment [11] - Despite this positive performance, the company faces challenges such as heavy leverage, volatile cash flows, and reliance on tax credits [11][12] Strategic Positioning - Alta's exit indicates a reassessment of risk-reward dynamics, as the fund's remaining top holdings focus on sectors with clearer near-term cash visibility [12] - Calumet's stock requires sustained execution to improve its valuation, with expectations of continued volatility until renewable margins stabilize [13]

Acquisition Overview - HollyFrontier Corporation (HFC) is acquiring Sonneborn for $655 million [7], which is 7x EBITDA multiple net of working capital and synergies [8] - The purchase price net of approximately $72 million in working capital is $583 million [10] - The transaction is expected to close in 2019 and is expected to generate approximately $85 million of annual EBITDA, including synergies [10] - The acquisition is expected to be immediately accretive to earnings and cash flow per share [10] Synergies and Financial Impact - HollyFrontier expects to capture approximately $20 million in annual synergies [10] - The synergies are expected to come from SG&A ($5 million), Logistics ($3 million), and Operations ($12 million) [36] - Pro forma EPS accretion is estimated at 30% in 2015, 157% in 2016, 69% in 2017, and 33% in the trailing twelve months ending July 31, 2018 [38] Assets and Operations - Sonneborn has a differentiated specialty products portfolio, including Petrolatums, White Oils, Microcrystalline Waxes, Natural Sodium Sulfonates, and Industrial Specialties [11, 16] - Sonneborn has a 3,300 barrel per day processing capacity in Petrolia, Pennsylvania [16] - Sonneborn has a 2,000 barrel per day combined processing capacity in the Netherlands [16] Market Positioning - 100% of Sonneborn earnings are attributable to the Rack Forward segment [19] - The acquisition shifts HollyFrontier's product mix towards finished products, with finished products representing 63% of the pro forma product slate by volume [28] - Pro forma sales are expected to be approximately $20 billion [28]