HollyFrontier Corp. (Dallas, Tex.; www.hollyfrontier.com) announced that it has entered into a definitive agreement to acquire Red Giant Oil Co. Red Giant Oil, a private family-owned lubricants company founded in 1903, is one of the largest suppliers of locomotive engine oil in North America.
Headquartered in Council Bluffs, Iowa, Red Giant Oil has storage facilities in Idaho, Utah and Wyoming, along with a blending and packaging facility in Texas. Following the acquisition, Red Giant Oil is expected to generate approximately $7.5 million in annual forecasted EBITDA for HollyFrontier.
George Damiris, President and CEO of HollyFrontier, commented, “We are pleased to announce the acquisition of Red Giant Oil, with its outstanding history and brand in the railroad lubricant industry. This transaction demonstrates the continued growth of our lubricant business and brings outstanding value to HollyFrontier.”
This transaction is subject to customary closing conditions and is expected to close in the third quarter of 2018.
HollyFrontier was represented by Morgan Lewis & Bockius LLP on this transaction.