Captain Fresh, an online seafood company, has acquired CenSea Inc, a US-based frozen fish and seafood importer and distributor, as reported by ET, citing the company’s founder and chief executive, Utham Gowda.
Gowda refrained from revealing the exact value of the deal; however, he mentioned that his company was completing a full acquisition of CenSea through a combination of cash and stock, with 90% of the payment being in cash. He further stated that CenSea, boasting a nationwide presence across the US, would serve as the cornerstone of Captain Fresh’s operations in the country.
“On the supply side, India and South east Asia form a substantial part of CenSea’s mix with multi-decade relationships with more than 100 factory partners in these supply markets… on the demand side we are excited about the potential to cross-sell to their existing customers,” Gowda said.
Acquiring the 40-year-old American firm is a strategic move for Captain Fresh as it ventures beyond seafood exportation into distribution across markets such as the US and Europe. This expansion initiative follows the recent acquisition of Senecrus, a French shrimp distributor.
Gowda mentioned that the company is currently in discussions regarding further acquisitions in the European market, which would grant them access to the North Atlantic supply markets. However, he refrained from providing additional details at this time.
On February 16, it was reported that Captain Fresh had raised $25 million in a funding round led by UK government-backed British International Investment (BII) and Andhra Pradesh-based Nekkanti Seafoods Group. This funding was part of a larger $48 million extended funding round at a $500 million valuation, out of which $20 million had already been raised by the firm in September last year.
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At the time, Gowda had indicated that within the next two to three months, the company anticipated that over 50% of its business would originate from the US market, a significant increase from the previous 25-30%. Furthermore, he stated that approximately 80-85% of the company’s total business would be derived from the European and US markets.
Approximately 2-3% of the company’s business originates from India. In remarks made in September last year, Gowda highlighted that the company achieved Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins of over 15-20% in international markets, contrasting sharply with the 3% EBITDA-level margin observed in India.
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