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

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: