Dallas-based independent petroleum refiner and marketer HollyFrontier has agreed to acquire Suncor Energy’s Petro-Canada Lubricants business for $845 million.
The acquisition will make HollyFrontier the fourth-largest lubricants producer in North America with a capacity of 28,000 barrels per day or around 10% of North American production, according to the company.
HollyFrontier produces gasoline, diesel fuel, jet fuel and other specialty products and operates five refineries through subsidiaries, capable of processing 457,000 barrels of crude oil per day.
“This transformative acquisition will diversify HollyFrontier with the addition of a differentiated high margin business with more stable cash flows,” said George Damiris, president and CEO of HollyFrontier. “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.”
The Petro-Canada Lubricants plant, located in Ontario, is the largest producer of base oils in Canada with 15,600 barrels per day of lubricant production capacity. With the acquisition, HollyFrontier expects to gain Petro-Canada’s product innovation and R&D capabilities, global sales and distribution network and global brand portfolio. HollyFrontier will also gain a perpetual license to use the Petro-Canada trademark in association with lubricants.