Comvita buys Whanganui-based Kiwi Honey for undisclosed sum

Comvita, which makes products based on the virtues of Manuka honey, has ramped up its supply buying Whanganui-based Kiwi Honey for an undisclosed sum.

The Te Puke-based company will add 3,500 beehives to its supply base after buying the apiary, it said in a statement. The acquisition was completed last week, with a confidential purchase price, it said.

"We anticipate approximately a third of our honey will be sourced from Comvita owned apiaries," chief executive Brett Hewlett said in a statement. "Our policy on honey supply remains one of supporting our loyal beekeeper supply partners and sourcing the majority of our Manuka honey requirements through these long-standing relationships."

In June Comvita rewarded shareholding beekeepers with a bonus issue after buying back 177,354 shares for a total $574,627.

Kiwi Honey is Comvita's fourth wholly-owned apiary, adding Whanganui to its footprint in Northland, Waikato and Wairarapa.

Earlier this year, Comvita said its balance sheet gave it capacity to make further acquisitions in honey supply and other raw materials.

The shares fell 0.5 percent to $4.09 in trading yesterday, and have surged 71 percent this year. The stock is rated a 'hold' based on one analyst recommendation compiled by Reuters, with a target price of $2.91.

BusinessDesk.co.nz

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