April 1, 2024
National New Markets Fund invests $17.5M into Rich Products Manufacturing Facility; 132 jobs coming to plant in Brownsville, TX
BROWNSVILLE, TX (March 11, 2024) – National New Markets Fund, LLC (“NNMF”), an affiliate of Los Angeles-based SDS Capital Group, has invested $17.5 million of its New Markets Tax Credit allocation (“NMTC”) for the expansion of global food supplier Rich Products’ Brownsville, TX manufacturing facility. The cumulative impact of NNMF’s investment will result in the creation of 132 full-time jobs, 70% of which will be filled by minority individuals.
Rich’s Brownsville, TX plant produces frozen seafood and appetizer products.. NNMF’s allocation will fund the acquisition of new equipment as part of the plant’s 150,000-square-foot expansion.
The NNMF investment utilizes capital from the NMTC program administered by the U.S. Treasury Department. Investment groups, such as NNMF, compete annually to receive NMTC awards. These selected allocatees sell the tax credits to institutional investors, using the proceeds to invest in projects benefiting low-income communities – such as Rich’s Brownsville manufacturing facility.
“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.”
With limited skilled labor in the surrounding region, Rich’s will offer workforce training, such as computer literacy courses, in partnership with Texas Southmost College to community members at a discounted cost. The courses will prepare the local workforce for employment at Rich’s and throughout the region.
“The economic and community benefits from Rich’s expanded production line 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 an 36% poverty rate.”
Rich Products received the NNMF allocation as part of a complex $25.5 million New Markets Tax Credit 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 expanded production line 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 most distressed communities.”
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 Markets Tax Credit allocation 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 distressed communities – both rural and urban. SDS Capital Group, the parent of NNMF, is a pioneer and national leader in impact investing. SDS’s founder, Deborah La Franchi, 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.
CONTACT & MORE INFO:
Bruce Beck, bruce@dbrpr.com
MEDIA RESOURCES & DOWNLOADS:
