DALLAS—HollyFrontier Corp. has completed its previously announced deal to acquire Suncor Energy's Petro-Canada Lubricants business for about $950 million at current exchange rates.
HollyFrontier said the acquisition has received all U.S. and Canadian regulatory requirements, and the Dallas-based firm said the deal will be immediately accretive to its earnings per share and cash flow.
Petro-Canada's Lubricants plant in Mississauga, Ontario, is the largest producer of base oils in Canada with 15,600 barrels a day of lubricant production capacity, according to HollyFrontier. It also is the only North American producer of high margin Group III base oils.
"Petro-Canada Lubricants is a great business with great people, brands, intellectual property and market presence," said George Damiris, HollyFrontier president and CEO. "Combined with our existing Tulsa specialty lubricants business, it creates scale, operational and financial synergies, and a strong platform for growth."
The Canadian facility is integrated downstream from base oils to finished lubricants and produces a broad spectrum of specialty lubricants and white oils that are sold to end customers worldwide.
HollyFrontier said the deal brings it industry leading product innovation and research and development capabilities, a global sales and distribution network, and a strong brand portfolio recognized globally. In addition, HollyFrontier receives a perpetual exclusive license to use the Petro-Canada trademark in association with lubricants.
The U.S. firm said the purchase makes it the fourth largest lubricants producer in North America with 28,000 barrels a day, or about 10 percent of the continent's production.