Manama, Bahrain-based private equity firm Investcorp recently took an ownership stake in Bensenville, Illinois, U.S.A.-based Fortune International LLC, a premium seafood and gourmet food distributor with operations centered in the U.S. Midwest.
In a SeafoodSource interview earlier this month, Fortune President and CEO Sean O’Scannlain said he will remain the CEO and that no changes in management will take place. He called Investcorp “the ideal firm to serve as our first institutional capital partner.”
Investcorp Managing Director of North America Private Equity Steve Miller explained to SeafoodSource in a separate interview why he agreed with O’Scannlain’s statement and outlined the rationale for his firm’s investment, as well as the opportunities the firm sees in the seafood sector.
SeafoodSource: Why invest in Fortune? In other words, what made Fortune special?
Miller: We believe that Fortune is ideally positioned in its growth trajectory with a strong management team and compelling platform as a leading super-regional specialty distributor of seafood and gourmet food products. The company has built a loyal and diverse customer base with a strong reputation for its best-class sourcing and customer service capabilities. They have a wide breadth of the freshest, highest-quality products supported by a strong regional distribution footprint in a growing, fragmented and resilient market. We believe that Fortune is positioned for accelerated growth and expansion across the United States.
SeafoodSource: Why is Investcorp interested in the seafood sector, which hasn’t seen much growth in recent years? Or is it more the foodservice distribution/broadline aspect of Fortune that attracted Investcorp, as it already has invested in those areas?
Miller: Fortune met all of our investment criteria as a best-in-class industry player with strong historical growth, an experienced management team, solid cash flow, and untapped growth potential. We have identified Fortune’s core market as an approximately USD 30 billion [EUR 27.8 billion] opportunity and specialty foodservice is a growing, resilient, and fragmented space. We also believe that Fortune is uniquely differentiated from its competitors given its superior product quality and services as well as its scaled seafood platform. We believe that broadliners are unable to compete with Fortune’s product quality, seafood expertise, and service levels, which are critical to the company’s current and future customer base. Lastly, we also anticipate increased consumption of seafood as consumers adopt healthier protein sources in their diet.
SeafoodSource: What is Investcorp’s view of how the seafood market in the U.S. will mature, adapt, and/or change in coming years?
Miller: Our view on the seafood market is that it is a stable and resilient industry and we are bullish on Fortune’s growth prospects. We anticipate consumers continuing to shift consumption to seafood versus other proteins, which should further accelerate market growth.
SeafoodSource: Will Investcorp make any further acquisitions in the seafood sphere?
Miller: We are excited to have entered into this partnership with Sean [O’Scannlain] and look forward to supporting Fortune’s efforts to further accelerate its geographic expansion both organically and through strategic acquisitions. As one of the most active mid-market firms in the world, we always evaluate potential opportunities that align with our focus areas and investment criteria.
Photo courtesy of Investcorp
