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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news