Rex said it acquired its ownership interest for $9.2m with a commitment of up to an additional $6.5m based upon the future profitability of NuGen.
NuGen operates a 100 million gallon annual nameplate capacity ethanol plant in Marion, South Dakota. The plant was built by Fagen and utilizes ICM technology. The investment increases Rex’s overall ownership interest of annual nameplate capacity ethanol production by approximately 33%.
Stuart Rose, CEO of Rex, said: “The NuGen investment furthers Rex’s strategy to prudently deploy its strong balance sheet for new investments in ethanol production facilities or other attractively valued renewable resources or industrial project opportunities. We look forward to working with our partner, Central Farmers Cooperative, to enhance the operations and profitability of the NuGen plant.”
Reflecting the completion of the NuGen transaction, Rex now has interests in seven ethanol production facilities representing its ownership of approximately 191 million gallons per year of annual nameplate capacity, the company said.
