Tyson jv partner to consider buyout offers
TULSA, Okla. – Syntroleum Corporation announced it has hired Piper Jaffray & Co. to review its options after receiving unsolicited offers for the company or its assets. The company owns Dynamic Fuels LLC with Springdale, Ark.-based Tyson Foods Inc.
The Dynamic Fuels facility in Geismer, La., has been sitting idle for the last six months until market conditions for renewable fuels improved, company executives said in May. The plant was to re-start by mid- to late July. The company ordered a new catalyst for the plant at a cost of $3 million to increase diesel yields. The Geismer facility uses 1.6 million lbs. of animal fat per day.
Syntroleum said the company received offers from other companies about a potential sale of the company, its assets and/or its intellectual property.
“Piper Jaffray is currently assisting the company with respect to evaluating these alternatives and is actively contacting additional parties as part of this process,” the company said in a news release. “There can be no assurances as to whether any particular strategic alternative for the company will be recommended by the board of directors or undertaken or, if so, upon what terms and conditions.”
The company said margins have reached historic highs in both renewable fuels and gas-to-liquid (GTL) production. Also, the long-term outlook for GTL improved significantly on the resurgence of the North American natural gas industry.
“Given the favorable commercial environment, the company believes that now is an appropriate time to broadly review its strategic alternatives with respect to its renewable and GTL intellectual property and its ownership and licensing interest in Dynamic Fuels,” the company said.