Carrix, Inc. and its parent company, FRS Capital Corp., today announced changes in the shareholders of FRS Capital Corp. and a significant expansion of their capital as Carrix continues to grow, retool for larger vessels and lead the industry consolidation now underway.

In a transaction that closed earlier today, the founding Smith/Hemingway family purchased all of the FRS Capital Corp. stock owned by its partners, entities owned by GS Infrastructure Partners and certain institutional investors. Following this purchase, Mr. Fernando Chico Pardo, a well-known Mexican businessman, through a holding company, made an investment in FRS Capital Corp., in exchange for a 49% ownership interest in FRS Capital Corp. The Smith/Hemingway family, which retains a controlling 51% ownership interest, also significantly increased its investment in FRS Capital Corp. These funds will be used to continue Carrix’s growth as the largest, privately-owned, independent port developer and operator in the United States and Western Hemisphere.

Oakland International Container Terminal with five ships working in July 2013.
Oakland International Container Terminal with five ships working in July 2013.

“We are delighted to welcome Fernando as a shareholder in FRS Capital Corp. He has an impressive track record in building leading companies and modern infrastructure and we look forward to working with him. Together with the Smith/Hemingway family, we are fortunate to have two highly respected and supportive families behind Carrix, with the same strong focus to provide quality service to our customers, and to continue our expansion and grow our business,” said Knud Stubkjaer, Carrix’s CEO. “With the substantial new capital injection, we are very well positioned to continue expanding our activities, enhancing existing operations and adding new terminals, as well as implementing technological upgrades. We have a major order-book for a series of new and advanced Automatic Stacking Cranes being delivered, and we are retooling for larger and innovative Ship-to-Shore cranes to service the latest generation of container vessels.”

“Our objectives will not change,” Stubkjaer continued. “We remain committed to operational quality, reliability, and high performance standards by working closely with our labor force and employing the most suitable methods and technology. We want to continue to be a constructive and relevant partner to our customers. To that end – and importantly – we continue with the same strong team of professionals at management and operational levels, which is essential to fulfill our objectives.”

Mr. Chico, in summing up his rationale for investing, said, “I am looking forward to joining the Smith/Hemingway family in supporting and advancing Carrix in its many activities. Carrix’s track record speaks for itself. The depth of experience in Carrix’s management team is unparalleled in the industry and provides the foundation for their continued position as the most productive and reliable terminal operators in the Americas. The team’s dedication to place their customers first, understanding and servicing their requirements, coupled with what we see as a world-class portfolio of strategically well positioned terminals and other assets, will be the spring board for sustained future growth.”

Carrix Chairman Jon Hemingway, stated, “We’ve been fortunate the past seven years to work closely with one of the world’s leading investors in infrastructure and their fine people but appreciate that, as with all investment funds representing an array of investors, they approach their investments with a need to invest, hold and then sell over a defined time frame. They have been a valuable and collaborative partner in our business through a challenging time for our industry and we hope that we will get the opportunity to work with them again.

We are equally fortunate to have gained Fernando as a partner going forward. During the short time we have worked together, we have realized how much we have in common in terms of our backgrounds, how we feel companies should be run, and the respect and admiration we have for the people we depend on in our endeavors. He, and the many talented people he works with, will add tremendous value to our company.”