HollyFrontier Corporation (HollyFrontier) has announced the completion of the previously announced acquisition of Suncor Energy’s Petro-Canada Lubricants (PCLI) business for CAD$1.125 billion, including working capital with an estimated value of CAD$342 million. All US and Canadian regulatory requirements have been received. HollyFrontier anticipates the acquisition will be immediately accretive to the Company’s earnings per share and cash flow.
The Petro-Canada Lubricants plant, located in Mississauga, Ontario is the largest producer of base oils in Canada with 15 600 bpd of lubricant production capacity, and is the only North American producer of high margin Group III base oils. The facility is downstream integrated from base oils to finished lubricants and produces a broad spectrum of specialty lubricants and white oils that are distributed to end customers worldwide. The Petro-Canada Lubricants business brings HollyFrontier industry leading product innovation and research and development (R&D) capabilities, a global sales and distribution network and strong brand portfolio recognided globally. With this transaction, HollyFrontier also acquired a perpetual exclusive license to use the Petro-Canada trademark in association with lubricants.
With the addition of the Petro-Canada Lubricants business, HollyFrontier becomes the fourth largest lubricants producer in North America with a capacity of 28 000 bpd, or approximately 10% of North American production.
George Damiris, President and CEO commented, “PCLI is a transformative acquisition that advances our long-term vision and strategy. PCLI is a great business with great people, brands, intellectual property, and market presence. Combined with our existing Tulsa specialty lubricants business it creates scale, operational and financial synergies, and a strong platform for growth. The transaction will benefit our stockholders, our current and new employees and Canada, especially as we expand the North American and international reach of PCLI.”
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/02022017/hollyfrontier-closes-acquisition/