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HollyFrontier inks deal to buy global hydrocarbon producer Sonneborn for $655M

HollyFrontier Corp. agreed to acquire the specialty hydrocarbon producer Sonneborn US Holdings Inc. and the Netherlands-based Sonneborn Cooperatief U.A. for $655 million, expanding its portfolio outside the U.S.

Sonneborn has manufacturing facilities in North America and Europe and supplies white oils, petrolatums and waxes globally. The companies' assets complement HollyFrontier's existing business, expand its global sales reach and support its strategy to integrate high-margin specialty products into its operations, according to a Nov. 13 news release.

The deal value includes working capital of about $72 million. The deal would be funded with cash on hand, and is expected to result in $20 million in potential annual synergies, such as logistics and operations cost savings.

The acquisition is scheduled to close in 2019. Morgan Lewis & Bockius LLP and Wachtell Lipton Rosen & Katz served as representatives to HollyFrontier and Goldman Sachs & Co. LLC acted as financial adviser.

HollyFrontier is a petroleum refiner with refineries in Kansas, Oklahoma, New Mexico, Wyoming and Utah. The company also markets refined products in the southwest U.S., the Rocky Mountains and the Pacific Northwest.