U.S. HollyFrontier’s subsidiary to buy Sonneborn for $655 million

Sonneborn US Holdings Inc. and Sonneborn Coӧperatief U.A., collectively Sonneborn, a specialty hydrocarbons and vegetable-based emollients manufacturer, has agreed to be acquired by petroleum refiner and petroleum products distributor HollyFrontier Corporation’s subsidiary for $655 million, including working capital with an estimated value of $72 million.

HollyFrontier expects to fund the transaction with cash on hand and anticipates the acquisition will be immediately accretive to its earnings per share, cash flow and earnings before interest, taxes, depreciation, and amortization margins.

With the addition of Sonneborn, HollyFrontier expects to become a leading supplier of specialty products. Sonneborn’s strong brand recognition and diversified portfolio of products will complement HollyFrontier’s existing lubricants and specialty products business.

This deal will advance HollyFrontier’s downward integration strategy into high margin specialty products and significantly grow the Rack Forward business segment. This transaction is subject to customary closing conditions and is expected to close in 2019.