REX American Resources Corp. now owns 98 percent of NuGen Energy LLC, an ethanol plant located in Marion, S.D., after completing an additional 50 percent investment on Nov. 1. NuGen operates the 100 MMgy ethanol plant that produced 115.7 million gallons in 2011. Continuing to increase its investment in ethanol, the NuGen acquisition increases REX&rsquo;s nameplate production capacity by approximately 30 percent from 169 to 219 million gallons.
Using cash-on-hand, REX obtained its interest from Central Farmers Cooperative LLC, a locally owned farmers cooperative, who retained 2 percent ownership. &ldquo;Giving effect to cash-on-hand at the plant and REX&rsquo;s capital contribution, NuGen&rsquo;s bank debt (including borrowings on the revolving line of credit) will be reduced to approximately $55 million from approximately $78 million,&rdquo; according to REX.
Solidifying the investment for REX, NuGen showed financial growth in 2011 with reported pre-tax income of $24.3 million. Also in 2011, REX recognized pre-tax earnings of $9.3 million with $3.1 million of dividends from its prior interest in NuGen.
&ldquo;NuGen is a highly efficient plant with solid operational performance, a favorable location and an excellent management team. The structure of the transaction allows us to significantly expand our ethanol production ownership in a manner that we believe will prove to be very favorable for our shareholders. CFC has played an important role in the NuGen facility and assisting it in achieving a strong financial and operational position,&rdquo; REX CEO Stuart Rose said.&nbsp;
REX released NuGen&rsquo;s summary statement for operations for 2010 and 2011, at which time REX owned 48 percent. The financials showed NuGen&rsquo;s successful ethanol business with increases of 43.8 percent in sales, 67.2 percent in gross profit, 140.6 percent in pretax net income.

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REX American Resources Corp. now owns 98 percent of NuGen Energy LLC, an ethanol plant located in Marion, S.D., after completing an additional 50 percent investment.

REX increases ethanol investments, now owns 98 percent of NuGen

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