Listed natural health company Comvita has paid $12.3 million
for Timaru-based New Zealand Honey Producers Co-operative,
which should ease recent supply constraints.
Comvita shares rose 28c, or 8.75%, after the announcement to
trade at $3.48.
The co-operative, founded in 1981, is owned by 70 South
Island beekeepers, and has the brands Hollands Honey, 3 Bees
and Sweet Meadow. It had total sales of $27.3 million in
The price comprises $7.3 million cash and $5 million in
Comvita shares to be released over six years.
Comvita has sourced its honey mainly in the North Island.
Chief executive Brett Hewlett said yesterday the purchase,
which is conditional on co-op shareholder approval, would
provide ''valuable production capacity'' and boost company
exposure in the South Island.