HollyFrontier Corp. will acquire Red Giant Oil Co., a private, family-owned lubricants company founded in 1903 and one of the largest suppliers of locomotive engine oil in North America.
Headquartered in Council Bluffs, Iowa, USA, 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 US$7.5 million in annual forecasted EBITDA for HollyFrontier.
In the mid-1980’s, Red Giant Oil began selling new railroad engine oil to two Class 1 railroads. Today, the company is the largest supplier of locomotive engine oil in North America.
“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.
HollyFrontier, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products.