HF Sinclair Corp. plans to separate its Lubricants & Specialties business into an independent publicly traded company while retiring its base oil refining assets in Mississauga, Ontario, with the transition expected to be substantially completed during 2027. The company said in a press release that the standalone business will continue supplying API Group I, Group II and Group III base oils through new commercial agreements with two global manufacturers and continued production from its Tulsa refinery.
The planned separation is part of HF Sinclair’s broader portfolio restructuring, creating two independent businesses with separate strategic priorities, it said. The lubricants business will retain its research and development laboratory, blending and packaging operations, along with supply chain, logistics and commercial activities in Ontario while shifting to an asset-light operating model.
HF Sinclair said the new supply arrangements and its Tulsa refinery will allow the standalone company to continue offering a full range of Group I, Group II and Group III base oils while improving service through a more centrally located North American distribution network.
The separation is expected to be completed within 12 to 18 months, subject to board approval, regulatory clearances and other customary conditions. No shareholder vote is required and the company said there is no assurance the transaction will proceed as planned.
“This announcement marks an important step in HF Sinclair’s portfolio optimization strategy,” Franklin Myers, chairperson and chief executive officer, said. “The separation will unlock value by creating two focused businesses with enhanced flexibility to pursue their respective strategic and capital priorities.”