REX American Resources Corporation, a renewable energy company, through its subsidiary acquired 48% interest in NuGen Energy, LLC. The transaction is valued at $15.7 million. Out of the total consideration, REX paid an initial $9.2 million, with an additional $6.5 million payable based upon the future profitability of NuGen. The company funded its initial investment from cash on hand.

Following the acquisition, REX has increased its overall ownership interest of annual nameplate capacity ethanol production by approximately 33%.

REX American CEO, Stuart Rose, commented, “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.”

NuGen Energy operates a nameplate 100 million gallon ethanol plant in Marion, South Dakota.

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