HollyFrontier Corporation, the Dallas firm with storage operations and refineries in Oklahoma and Kansas, announced its subsidiaries have wrapped up the previously announced acquisition of Sonneborn US Holdings Inc. and Sonneborn Cooperatief U.A. in a $655 million deal.
The acquisition included working capital with an estimated value of $72 million and HollyFrontier anticipates it will immediately help the firm’s earnings per share.
For more than 100 years, Sonneborn has been setting global industry standards by offering specialty products 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 companies use Sonneborn’s products. With manufacturing facilities in North America and Europe, Sonneborn is a leading specialty hydrocarbon producer that offers a global reach combined with expertise and depth of experience.
With the addition of Sonneborn, HollyFrontier, itself, becomes a leading global supplier of specialty products. Sonneborn’s strong brand recognition and diversified portfolio of products complements HollyFrontier’s existing business.
This acquisition advances HollyFrontier’s downward integration strategy into specialty products and significantly grows the Rack Forward business segment. Sonneborn strengthens HollyFrontier’s global footprint by increasing processing and blending capabilities in North America and Europe and expanding the global sales organization and distribution network.
HollyFrontier plans to review Sonneborn’s manufacturing capabilities and upgrade and expand where appropriate, having already identified a low-capital, high return project to expand the sulfonation line at the European facility as a likely opportunity.