Refinery operator makes $655 million purchase of Sonneborn Holdings

With refineries in Tulsa, El Dorado, Kansas and elsewhere, HollyFrontier Corporation is expanding with a $655 million purchase of Sonneborn US Holdings Inc. and Sonneborn Cooperaatief U.A.

HollyFrontier is pulling off the deal with cash on hands and anticipates it will lead to an immediate increase in earnings per share, cash flow and adjusted earnings margins. Sonneborn has been in operation for more than 100 years and specialized as one of the world’s largest dedicated suppliers of white oils, petrolatums and waxes. Many of the largest personal care, cosmetic, pharmaceutical and food processing company’s use Sonneborn’s products.

HollyFrontier will become a leading global supplier of specialty products as a result of the acquisition. Sonneborn had generated nearly $66 million in adjusted earnings over the 12-months ending July 2018.

Management at HollyFrontier maintain that the purchase will also strengthen the company’s global footprint by increasing processing and blending capabilities in North America and Europe.

George Damiris, President and CEO of HollyFrontier, commented, “This transaction demonstrates our continued commitment to the finished lubricants business and is expected to bring outstanding value to our shareholders and to the customers and employees at both companies.”

Closing isn’t expected until sometime in 2019.