FAPS, Inc., the leading terminal for import and export of automobiles in the Port of New York and New Jersey, said on Friday it had completed a recapitalization with Seacoast Capital.
Seacoast is an investment firm with offices in Danvers, Mass. and San Francisco that invests both mezzanine and equity capital in small growing companies.
The terminal said as part of the recapitalization it has reached agreement with the Port Authority of New York and New Jersey for an amended lease through 2024. The company had been involved in a rent dispute with the port authority, which last year took the terminal's security deposit
The transaction officially closed Dec. 21 and FAPS said it included full settlement of all open matters with the port authority. The announcement of the deal came just before the North American International Auto Show opens today in Detroit.
FAPS said it is "now poised to leverage its strategic location serving
the nation’s most densely populated consumer markets by maintaining long-term agreements with twelve of the world’s leading automotive
manufacturers, as well as major marine vessel lines and railroad
FAPS, which employs about 250, is a third generation, family-owned company based in Port Newark, N.J. that was founded by John LoBue in 1956 as “Foreign Automotive Preparation Service” and today is run by his sons.
It has the capacity to process 500,000 vehicles annually and the ability to reach nearly 60 percent of the U.S. and Eastern Canadian population within two days by truck or rail transport. FAPS operates a 120-acre marine terminal which includes over 500,000 square feet in processing centers to support the accessorizing and vehicle quality standards for imported vehicles and export preparation for global markets such as China, Russia, Latin America and the Middle East. FAPS facility can accommodate four PCC/PCTC vessels simultaneously and has an on-dock rail terminal with 48 railcar spots adjacent to both berths and processing centers. It receives about 350 ships annually and can also handle high and heavy cargoes.
“I am proud to have this opportunity to team with Seacoast to build upon our family’s rich business legacy and continue the growth and evolution of FAPS as a global benchmark in quality and production” said August LoBue, co-principal of the company with his brother Gary.
"Seacoast’s resources, timing and confidence in our business provides us with a unique opportunity to accelerate our future growth, reinvestments and leverage our specialized industry and distribution competencies," said Gary LoBue. - Chris Dupin