Patriot Renewables to continue under current ownership
After six months of deliberations and a short time on the market, the board of Patriot Holdings LLC, owner of the 110 MMgy Patriot Renewable Fuels LLC plant in Annawan, Ill., has taken down the “for sale” sign.
The company retained Ascendant Partners Inc. last June to explore strategic options and in October announced it was exploring a potential sale. Scott McDermott, a partner with Ascendant, explained the marketing effort, which included a “virtual tour” of the plant did result in a number of offers, but at a time when market conditions for the ethanol industry were deteriorating.
“While multiple offers were received, none were considered sufficient to meet shareholder expectations,” McDermott explained in a statement. “Ultimately Patriot decided not to accept any of the offers received and intends to continue operating the plant independently for the foreseeable future.”
Ascendant Partners explained the plant had a strong logistical location and “a track record of superior financial and operating performance.”
Project planning for the Illinois plant began in 2004 when the Henry County Economic Development Partnership raised local funds and commissioned a feasibility study. Patriot was endorsed to go forward with the project in January of 2005 and fundraising, site selection and planning began in earnest. Fagen Inc. began construction in late 2006. Permitted for up to 130 MMgy, the ICM Inc.-designed plant came online in late 2008.
Earlier this month, Ascendant Partners announced the closing of a successful financial restructuring for LifeLine Foods LLC.