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HollyFrontier To Acquire Sonneborn For $655 Mln, Incl. Working Capital

Independent petroleum refiner and marketer HollyFrontier Corp. (HFC) said Tuesday that it has agreed to acquire Sonneborn US Holdings Inc. and Sonneborn Co?peratief U.A., collectively Sonneborn, for $655 million, including working capital with an estimated value of $72 million. The transaction is expected to close in 2019.

With manufacturing facilities in North America and Europe, Sonneborn offers specialty products as one of the world's largest dedicated suppliers of white oils, petrolatums and waxes. HollyFrontier noted that many of the largest personal care, cosmetic, pharmaceutical and food processing companies use Sonneborn's products.

HollyFrontier said it 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 EBITDA margins.

With the addition of Sonneborn, Dallas, Texas-based HollyFrontier, itself, will become a global supplier of specialty products. According to HollyFrontier, Sonneborn's brand recognition and diversified portfolio of products will complement HollyFrontier's existing lubricants and specialty products business.

Sonneborn generated about $66 million of EBITDA over the 12-month period ended July 2018, representing an EBITDA margin of 18 percent.

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