Private investment firm Sun Capital Partners Inc. has announced that an affiliate has completed the acquisition of Captain D's Seafood Kitchen, the second largest casual seafood chain in the United States. Terms of the purchase from Sagittarius Brands Inc. were not disclosed.
David Head, president and CEO of Captain D's, said, "We are very pleased to join the family of Sun Capital affiliates, a financial sponsor with deep operating experience in quick-service and fast casual restaurants. With Sun Capital's support, we will continue to focus on several key improvement initiatives, while staying true to our overall objective of serving our loyal customers a high quality, cooked-to-order seafood meal at a good value. We look forward to working with the Sun Capital team and benefiting from their deep operating experience in quick service and fast casual restaurants."
Headquartered in Nashville, Tenn., Captain D's is a 539-unit chain featuring signature freshly hand-battered fried fish as well as a wide variety of grilled fish, shrimp and chicken dishes plus fish sandwiches and regional seafood favorites. The first restaurant opened in 1969, originally called Mr. D's. Since then, Captain D's has expanded across 25 states and a handful of overseas markets. The brand has a leading position in core markets throughout Tennessee, Georgia, Alabama, Mississippi and Missouri.
Aaron Wolfe, principal at Sun Capital Partners, said, "We are delighted to welcome Captain D's to our family of restaurant companies and are eager to begin working with the management team and dedicated associates. We believe there are opportunities to continue to enhance the Captain D's brand, while concentrating on the core values that the brand has focused on for over 40 years — great, fresh seafood cooked-to-order and served with Southern hospitality."
When news of the seafood brand's being up for sale was announced in January, Michael Schaefer, an industry analyst with Euromonitor International, said he saw limited potential for QSR seafood concepts to succeed as national brands. Of greater potential would be an innovative fast casual concept that focused on freshness and sustainability, he said.
Captain D's began in 1999 to rebrand as a fast casual with a significant re-imaging program that updated its stores. But Head told QSRweb.com in March 2009 that the company is more quick-casual, with a price point relevant to QSR and a fast casual service model.
Sagittarius Brands leaders have said they have no plans to sell the Del Taco brand.
In addition to Captain D's Seafood Kitchen, Sun Capital counts among its affiliated portfolio companies a number of other restaurant businesses, such as fast casual and casual chains Boston Market, Bruegger's, Fazoli's Restaurants, Friendly's, Garden Fresh, Restaurants Unlimited, Smokey Bones Barbeque & Grill and Souper Salad. The firm places strong emphasis on in–house operational expertise, and partners closely with the management teams of its portfolio companies to grow their businesses and improve their operations.
