Rich Products Partners with National New Markets Fund (NNMF) on Phase Two of Rich’s Brownsville, TX Manufacturing Facility Expansion
*NNMF to invest $17.5M into the $117M expansion project, creating more than 130 local jobs*
*BROWNSVILLE, TX / ACCESSWIRE / April 1, 2024 / *Rich Products ("Rich's"), a global family-owned food company, and National New Markets Fund, LLC ("NNMF") announced today that the second phase of Rich's Brownsville, TX manufacturing facility expansion is officially underway. NNMF, an affiliate of Los Angeles-based SDS Capital Group, will invest $17.5M of its New Markets Tax Credit ("NMTC") allocation to support the 150,000-square-foot expansion, which will increase Rich's production capacity for its growing branded appetizer business.
Rich's largest capital campaign to date, the $117M expansion is comprised of two phases. Phase two, slated to be completed in July 2025, will add capacity for greater production capabilities and storage. The first phase, which began in 2023, included the development of a new frozen warehouse that is expected to open this summer. Upon completion, the full expansion project is expected to create more than 130 full-time jobs, 70% of which are slated to be filled by members of Brownsville's marginalized communities.
"We've seen a huge influx in customer demand within our growing seafood and appetizer business, so adding capacity is key for continued growth," said Kevin Spratt, president, Rich Products' U.S./Canada region. "As a proud member of the Brownsville community for over 60 years, we're fully committed to strengthening our local impact with the right combination of associates, products and infrastructure. We're grateful to NNMF for being a key supporting player in this project and are excited about the opportunities this will create for our business, the local community and the valued customers we serve every day."
The NNMF investment capital uses funding generated from the New Markets Tax Credit (NMTC) program administered by the U.S. Treasury Department. This program provides investment capital for projects benefiting low-income communities, including Rich's Brownsville facility. In addition to creating job opportunities, Rich's will offer workforce training to the Brownsville community, including computer literacy courses in partnership with Texas Southmost College. The courses will prepare the local workforce for employment at Rich's and other regional organizations.
"The economic and community benefits from Rich's expansion in Brownsville are noteworthy," said Deborah La Franchi, CEO, National New Markets Fund. "This is a company that is committed to its associates-not only is it creating more than 130 jobs, but it's offering quality wages and benefits in a community grappling with a 35.7% poverty rate."
Rich's received the NNMF allocation as part of a complex $25.5 million NMTC financing package. Dudley Ventures Community Investment Fund is the investor purchasing the NMTCs from each of the participating NMTC allocatees: NNMF and DV Community Investment Corporation (DV CID).
"Dudley Ventures is proud to support Rich's expansion through our investment into the New Markets Tax Credits of NNMF and DV CID," said Kyle Koupal, Vice President at Dudley Ventures. "We are committed to supporting projects that create accessible jobs in our nation's marginalized communities."
For those interested in joining the growing Rich's team in Brownsville, please visit careers.rich.com.
*MEET RICH'S. *
Rich's, also known as Rich Products Corporation, is a family-owned food company dedicated to inspiring possibilities. From cakes and icings to pizza, appetizers and specialty toppings, our products are used in homes, restaurants and bakeries around the world. Beyond great food, our customers also gain insights to help them stay competitive, no matter their size. Our portfolio includes creative solutions geared at helping food industry professionals compete in foodservice, retail, in-store bakery, deli, and prepared foods among others. Working in 100 locations globally, with annual sales exceeding $5.8 billion, Rich's is a global leader with a focus on everything that families make...possible.
Rich's®-Infinite Possibilities. One Family.
Learn more at Richs.com or join the conversation on Facebook, Instagram, LinkedIn and Twitter.
*About National New Markets Fund*
*National New Markets Fund, LLC* , founded in 2005, has invested $752 million (51 investments) of its New Market Tax Credit allocations into projects located in the Great Lakes region and the Deep South. Each investment has provided critical community services or quality jobs to high-distress communities - such as hospitals, charter schools, and food banks, as well as job-creating manufacturing expansions. In 2013, NNMF narrowed its focus to invest only in manufacturing and food-processing companies (26 companies total). This more focused strategy centers on creating quality jobs for the local residents of these impoverished communities - both rural and urban. SDS Capital Group, the parent of NNMF, is a pioneer and national leader in impact investing. SDS's founder launched SDS in 2001 with a vision of creating a platform of impact funds that would attract and engage the private-sector in the battle against poverty. Today, SDS's platform includes five distinct impact fund strategies ($1.3 billion current asset under management; additional $1.1 billion exited), with its direct investments having helped support the creation of over 25,000 jobs and over 6,500 low-income or permanent supportive housing units throughout the US.
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*MEDIA CONTACTS:*
*Rich Products:* Mary Pace
mpace@rich.com
(860) 550-1736 (mobile)
*NNMF:* Bruce Beck
bruce@dbrpr.com
(805) 777-7971 (office)
(818) 540-8077 (mobile)
*SOURCE: *Rich's
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