Rich Products announces second phase of Texas expansion
The company is kicking off the next half of its Brownsville facility expansion.
courtesy of: Farm Rich
Rich Products, a global family-owned food company, and National New Markets Fund have announced today that the second phase of Rich’s Brownsville, TX manufacturing facility expansion is underway. NNMF, an affiliate of Los Angeles-based SDS Capital Group, will invest $17.5 million 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 $117 million expansion comprises 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,” says 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 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,” says 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,” says Kyle Koupal, vice president at Dudley Ventures. “We are committed to supporting projects that create accessible jobs in our nation’s marginalized communities.”
Related: Kevin Spratt, president for the U.S-Canada region, Rich Products (podcast)
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