Comvita touted as potential bidder for Manuka Health company
By Tina Morrison
July 30 (BusinessDesk) - Comvita, the NZX-listed manuka honey company, declined to comment on whether it is interested
in making a bid for honey company Manuka Health New Zealand which has reportedly been put up for sale by its Australian
owner Pacific Equity Partners.
The Australian newspaper suggested Comvita or its largest shareholder China Resources Ng Fung as possible buyers of
Manuka Health, which was put on the market about six weeks ago for more than A$200 million by PEP and advisers Luminis
Partners. Manuka Health was reportedly sold to the Australian private equity firm in 2015 for $110 million.
A Comvita spokeswoman said that as listed company, it was unable to comment on its interest or not in any potential
acquisitions without first updating the market. While naming Comvita as a potential buyer, the Australian newspaper also
said "the current vibe" was that it was not interested in buying Manuka Health.
Comvita shares last traded at $5.80, and have shed 30 percent of their value this year, taking its market capitalisation
down to $264 million, after poor honey harvests hurt earnings. Demand for Manuka honey has soared in recent years on the
back of its antibacterial properties and demand for natural health foods.
Other potential buyers for Manuka Health include Chinese private equity firm CDH Investments, which has a controlling
stake in New Zealand vitamin brand Go Healthy; Chinese group Primavera which owns Australian vitamin group Vitaco; and
global giant Unilever, according to Australian reports, although unidentified sources were cited saying some of those
buyers were unlikely and potential Japanese buyers had shied away at the price tag.
Te Awamutu-based Manuka Health had revenue of $79.5 million and net profit of $3.5 million in the year ended June 30,
2017, according to its annual filing to the Companies Office. The company was founded in 2006 by Kerry Paul, with 78
percent of sales derived from exports.
(BusinessDesk)
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