A more than $1 billion purchase of a Canadian company has been carried out by Dallas-based HollyFrontier.
The Texas firm announced completion of its acquisition of Suncor Energy’s Petro-Canada Lubricants business for $1.125 billion in Canadian dollars. The $1.1 billion purchase includes working capital with an estimated value of CAD $342 million.
The Petro-Canada Lubricants plant is located in Mississauga, Ontario and is the largest producer of base oils in Canada. It has a lubricant capacity of 15,600 barrels a day and is the only North American producer of high margin Group III base oils.
The purchase brings HollyFrontier industry some leading production innovation and research and development capabilities. It also makes HollyFrontier the fourth largest lubricants producer in North America with a capacity of 28,000 barrels per day or nearly 10 percent of North American production.