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HollyFrontier recently announced that it has entered into a definitive agreement to acquire Suncor Energy's Petro-Canada Lubricants business for approximately $845 million. The transaction, which is subject to regulatory approval and customary closing conditions, is expected to close in the first quarter of 2017.
The Petro-Canada Lubricants plant located in Mississauga, Ontario, is the largest producer of base oils in Canada with 15,600 barrels per day of lubricant production capacity. It is also the only North American producer of high-margin Group III base oils. Downstream-integrated from base oils to finished lubricants, the facility produces a broad spectrum of specialty lubricants and white oils.
The Petro-Canada Lubricants business is expected to provide HollyFrontier with product innovation, research and development capabilities, a global sales and distribution network, and a strong brand portfolio. HollyFrontier also acquires an exclusive license to use the Petro-Canada trademark in association with lubricants.
With the addition of the Petro-Canada Lubricants business, HollyFrontier will become the fourth-largest lubricant producer in North America with a capacity of 28,000 barrels per day or approximately 10 percent of North American production.
"Petro-Canada Lubricants is a great business which, combined with our existing Tulsa lubricants business, creates scale and will create a strong platform for growth," said George Damiris, HollyFrontier president and CEO. "We look forward to realizing the operational and financial benefits of this combination to further strengthen our company and drive continued value creation for HollyFrontier."
For more information, visit www.hollyfrontier.com.