DALLAS--(BUSINESS WIRE)--
HollyFrontier Corporation (NYSE: HFC) ("HollyFrontier") today announced
that its subsidiaries have completed the previously announced
acquisition of Sonneborn US Holdings Inc. and Sonneborn Coӧperatief U.A.
(collectively “Sonneborn”) for $655 million, including working capital
with an estimated value of $72 million. HollyFrontier anticipates the
acquisition will be immediately accretive to HollyFrontier’s earnings
per share, cash flow and EBITDA margins.
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.
About HollyFrontier Corporation:
HollyFrontier Corporation, headquartered in Dallas, Texas, is an
independent petroleum refiner and marketer that produces high value
light products such as gasoline, diesel fuel, jet fuel and other
specialty products. HollyFrontier owns and operates refineries located
in Kansas, Oklahoma, New Mexico, Wyoming and Utah and markets its
refined products principally in the Southwest U.S., the Rocky Mountains
extending into the Pacific Northwest and in other neighboring Plains
states. In addition, HollyFrontier produces base oils and other
specialized lubricants in the U.S., Canada and Netherlands, and exports
products to more than 80 countries. HollyFrontier also owns a 57%
limited partner interest and a non-economic general partner interest in
Holly Energy Partners, L.P., a master limited partnership that provides
petroleum product and crude oil transportation, terminalling, storage
and throughput services to the petroleum industry, including
HollyFrontier.
HFC Forward Looking Statement:
The statements contained herein relating to matters that are not
historical facts are "forward-looking statements" within the meaning of
the federal securities laws. These statements are based on our beliefs
and assumptions using currently available information and expectations
as of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties. Although we believe that such
expectations reflected in such forward-looking statements are
reasonable, we cannot give assurance that our expectations will prove to
be correct. Therefore, actual outcomes and results could materially
differ from what is expressed, implied or forecast in these statements.
Any differences could be caused by a number of factors including, but
not limited to:
-
our failure to successfully integrate the operation of Sonneborn with
our existing operations or to realize anticipated cost saving
synergies;
-
risks and uncertainties with respect to the actions of actual or
potential competitive suppliers and transporters of refined petroleum
or lubricant products in HollyFrontier's markets;
-
the demand for and supply of crude oil, refined products and lubricant
products;
-
the spread between market prices for refined products and market
prices for crude oil;
-
the possibility of constraints on the transportation of refined
products;
-
the possibility of inefficiencies, curtailments or shutdowns in
refinery operations or pipelines;
-
effects of governmental and environmental regulations and policies;
-
the availability and cost of financing to HollyFrontier;
-
the effectiveness of HollyFrontier's capital investments and marketing
strategies;
-
HollyFrontier's efficiency in carrying out construction projects;
-
the ability of HollyFrontier to acquire refined product operations or
pipeline and terminal operations on acceptable terms and to integrate
any future acquired operations;
-
the possibility of terrorist attacks and the consequences of any such
attacks;
-
general economic conditions; and
-
other financial, operational and legal risks and uncertainties
detailed from time to time in HollyFrontier's Securities and Exchange
Commission filings.
The forward-looking statements speak only as of the date made and, other
than as required by law, HollyFrontier undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190201005391/en/
HollyFrontier Corporation
Craig Biery, 214-954-6510
Director,
Investor Relations
or
Jared Harding, 214-954-6510
Investor
Relations
Source: HollyFrontier Corporation