Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Comvita shares jump on $12.3 million acquisition of NZ Honey

Comvita shares jump on $12.3 million acquisition of NZ Honey

By Suze Metherill

May. 22 (BusinessDesk) - Comvita shares jumped 8.8 percent after the maker of healthcare products based on manuka honey said it will buy New Zealand Honey for $12.3 million as part of a strategy to boost supplies of the raw material.

Comvita said the Timaru-based honey producer, which is owned by the New Zealand Honey Producers Cooperative and operates the Hollands Honey, 3 Bees and Sweet Meadow brands, recorded $27.3 million of sales in 2013. Te Puke-based Comvita has been looking to secure its own apiaries after honey shortages over the years crimped sales growth.

The shares gained 28 cents to $3.48 and have declined 12 percent this year.

If the 70 beekeeper shareholders accept the offer, Comvita will acquire all assets of NZ Honey, including land and honey processing assets in Timaru, the honey inventory at settlement and a long-term honey supply agreement with the co-op. Comvita will pay $7.3 million in cash and $5 million in shares, issued at $3.50 per share, held in escrow and released to the co-op annually over the next years.

"This acquisition goes a long way to address the supply constraints that have been challenging Comvita in recent years," said chief executive Brett Hewlett. "By purchasing New Zealand Honey and partnering with New Zealand Honey Producers Cooperative we are able to combine export initiatives and leverage Comvita's international distribution and premium brand image."

Earlier this month Comvita reported annual net profit of $7.5 million after reporting a first-half loss of $790,000 last November as price competition in Australia and the UK held back sales. The Hong Kong market was affected by greater scrutiny on New Zealand products in the aftermath of the Fonterra Cooperative Group's botulism contamination false alarm.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Weak Dairy Prices Prompt Pull Back In Fonterra Forecasts

Weak global dairy prices have prompted analysts to pull back their expectations for Fonterra Cooperative Group's payout to farmers for next season. More>>

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news