REX said it will consolidate the plant’s results in its financial statements. In the twelve month period ended July 31, 2011, REX recognized pre-tax earnings of $9.3 million and received dividends of $3.1 million related to its then 48% equity ownership interest in NuGen. This acquisition increases REX’s ownership of annual operating nameplate production capacity by approximately 30% from approximately 169 million gallons to approximately 219 million gallons.
“NuGen is a highly efficient plant with solid operational performance, a favorable location and an excellent management team,” said REX Chief Executive Stuart Rose. “The structure of this 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.”
REX American Resources has interests in six operating ethanol production facilities.