Online seafood firm Captain Fresh has announced the acquisition of CenSea Inc., a prominent US-based frozen fish and seafood importer and distributor. The acquisition marks a significant milestone for Captain Fresh’s expansion efforts, according to founder and chief executive Utham Gowda.
While the exact value of the deal remains undisclosed, Gowda revealed that Captain Fresh has fully acquired CenSea in a cash-and-stock transaction, with 90% of the consideration paid in cash. With its extensive presence across the United States, CenSea is poised to become the cornerstone of Captain Fresh’s operations in the US market.
Commenting on the acquisition, Gowda emphasized CenSea’s robust supply network, particularly in India and Southeast Asia, where it maintains longstanding relationships with over 100 factory partners. He expressed optimism about leveraging these partnerships to enhance supply capabilities and explore cross-selling opportunities with CenSea’s existing customer base.
The acquisition of CenSea aligns with Captain Fresh’s broader strategy to diversify its operations beyond seafood exportation into distribution in key markets such as the US and Europe. This move follows the recent acquisition of French shrimp distributor Senecrus, further solidifying Captain Fresh’s position as a global player in the seafood industry.
Gowda hinted at additional acquisition plans in the European market, emphasizing their potential to access North Atlantic supply markets. This expansion comes on the heels of Captain Fresh’s successful funding round, which saw the firm raise $25 million led by UK government-backed British International Investment (BII) and Andhra Pradesh-based Nekkanti Seafoods Group.
According to Gowda, the funding round, part of a larger $48 million extended funding initiative, valued Captain Fresh at $500 million. With a substantial portion of its business set to originate from the US market in the coming months, Captain Fresh anticipates a significant increase in its presence in both the European and US markets.
While a small fraction of its business currently comes from India, Gowda highlighted the higher earnings potential in international markets, citing earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of 15-20%, compared to 3% in India.
Captain Fresh’s latest acquisition underscores its commitment to expansion and diversification, positioning the company for continued growth and success in the global seafood market.