Published: 2:20 pm, Tue. Jul. 10th, 2018Updated: 2:19 pm
HollyFrontier Corporation has announced it has entered into a definitive agreement to acquire Red Giant Oil Company.
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.
“We are pleased to announce the acquisition of Red Giant Oil, with its outstanding history and brand in the railroad lubricant industry,” said George Damiris, President and CEO of HollyFrontier. “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.