HollyFrontier Corporation (NYSE: HFC) has completed the acquisition of Petro-Canada Lubricants Inc. from Suncor Energy Inc. (TSX/NYSE: SU) for CDN $1.125 billion in cash, including working capital with an estimated value of $342 million.
The acquisition includes Petro-Canada Lubricants’ production and manufacturing centre in Mississauga, Ontario and the global marketing and distribution assets including its global offices.
Under the terms of the agreement, HollyFrontier will continue to operate the lubricants business under the Petro-Canada trademark. 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 barrels per day, or approximately 10% of North American production.
Goldman, Sachs & Co. acted as financial advisor, Morgan, Lewis & Bockius LLP and Borden Ladner Gervais LLP acted as legal counsel to HollyFrontier in connection with the acquisition.
photo credit: Petro-Canada Lubricants