HollyFrontier Corp. recently announced that it has entered into a definitive agreement to acquire Red Giant Oil Co. The transaction is expected to close in the third quarter of 2018 and is subject to customary closing conditions.
A private family-owned lubricant company founded in 1903, Red Giant Oil is one of the largest suppliers of locomotive engine oil in North America. It is headquartered in Council Bluffs, Iowa, and has storage facilities in Idaho, Utah and Wyoming, as well as a blending and packaging facility in Texas.
"We are pleased to announce the acquisition of Red Giant Oil with its outstanding history and brand in the railroad lubricant industry," said George Damiris, president and CEO of HollyFrontier. "This transaction demonstrates the continued growth of our lubricant business and brings outstanding value to HollyFrontier."
Following the acquisition, Red Giant Oil is expected to generate approximately $7.5 million in annual forecasted earnings before interest, tax, depreciation and amortization (EBITDA) for HollyFrontier.
Headquartered in Dallas, HollyFrontier is an independent petroleum refiner and marketer that produces gasoline, diesel fuel, jet fuel, asphalt, heavy products and specialty lubricant products. The company also owns Petro-Canada Lubricants.
For more information, visit www.hollyfrontier.com.