Comvita Buys UK Company To Get Closer To Its Custo
For Immediate Release
September 26, 2005
Comvita Buys UK Company To Get Closer To Its Customers
Natural healthcare product company Comvita Limited has purchased its United Kingdom based distribution partner, New Zealand Natural Food Co Ltd.
The acquisition of New Zealand Natural Food Company is a significant step forward for Comvita as the UK export market currently accounts for a significant portion of total sales. The UK was Comvita's first export market and for most of its history it has been the most important. Comvita's total export sales account for over 60% of turnover.
Comvita consumer products provide the majority of New Zealand Natural Food's current business through health, pharmacy and grocery outlets.
Located at Park Royal, the business is conveniently situated in a fast developing commercial area between Heathrow and Central London.
Sales through its new subsidiary are expected to be around GBP 2,000,000 in 2005, and it will be earnings accretive from the first year.
Chairman Bill Bracks says, "We have built up a lot of expertise in running off shore-subsidiaries. We've also proven that applying our management and marketing expertise, and combining that with direct involvement in the market to be closer to our end customer, we grow our business more quickly. This is a very exciting step for Comvita."
Ron and Pamela Steele, the former owners of New Zealand Natural Food Co have been working closely with Comvita and marketing the brand for 20 years in the United Kingdom. They well deserve congratulations for the way they have grown and developed the business," says Bracks.
Brett Hewlett Comvita's chief executive is excited about the growth opportunities for Comvita. "It will enable Comvita to build on the offshore success Comvita has enjoyed with wholly owned subsidiaries in Australia, Japan and Taiwan," says Hewlett. Comvita takes over at a time when the Comvita brand is well recognised and accepted by the UK market as both having excellent products and an exceptional ethical reputation.
The purchase will take effect from 1 December 2005 and is for an undisclosed sum. The purchase will be funded by borrowings plus the issue of £50,000 in share capital.
Comvita's consumer division manager, Scott Coulter, says Comvita has been working on the acquisition for two years.
"It fits exceptionally well with our growth strategy and it provides a platform to develop further into Europe, a market with some 450 million people."
Comvita was announced Food & Beverage Exporter of the Year at the recent New Zealand Trade & Enterprise Export Awards.